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A Quick and Easy Guide to Starting a Small Business 

A good small business usually starts out as merely an idea. However, the key to transform it into a reality is to incorporate your ideas into action. That is where a lot of people can begin to feel overwhelmed. It is totally understandable to get confused and freeze up at some point on the things that are needed in order to get your small business started. On the other hand, keeping your faith and moving forward is actually a whole lot easier than backing down and forget your dreams of becoming an entrepreneur.

Small Business

Just like any big goal, when you start breaking your vision down into smaller and easier tasks, you will be able to handle enough of the necessary actions in order for you to get started. In this article, you will learn 6 easy ways to get through the process of starting a small business in the most simplified yet highly effective form.

Create a Simple One-Page Business Plan

One major key to a successful business, most especially in the startup period, is to always keep things simple and easy, as well as costs low. Costs here do not just mean your financial transactions, but also your time.

A lot of would-be business owners tend to fail in trying to make the most robust and biggest business plan in the world. As a matter of fact, you are only going to use your business plan if you are seeking for financing and or investment. And even if you’ll be seeking those things along the way, it is highly recommended that small business owners should start their way to success by testing their own creative ideas first before trying to invest a huge amount of money and time.

Therefore, in order to get started, try creating a simple, business plan that only includes a single page, but clearly states a high level overview of your small business. Try incorporating these questions in your business plan and you can definitely achieve a simple yet effective one.

1. Define your vision. What do you think is the end result of your small business?

2. Define your mission. In contrary to your vision, your mission must explain some reasons why your company is built.

3. Define your objectives. Ask questions like: What are your goals? What do you plan to do for your business? Do you want expansion in the future? These questions should lead to your business’ vision and mission.

4. Outline the most basic strategies in your business. How can you achieve the objectives you have listed?

5. Write a simple and basic action plan. You can bullet out those with smaller actions required in order to achieve the objectives you have stated in your business plan.

That’s it. Other might create a business plan longer than one page, yet it will surely be shorter and more organized compared to a full business plan that could usually take many weeks to come up. In you need additional information on how to create an effective and efficient business plan, try checking for other helpful tips on the web. In addition to that, if you have any concerns with the legal aspects of your business, it is best that you hire the professional service of a lawyer.

Make Decisions Based on a Budget

While it is highly recommended to keep your expenses as low as possible, you will still have to determine your budget in order to get started as well as how you will be able to spend to keep your business up and running. If you are self-funding your business, you should always be realistic about monetary factors like budget allocations and how you are going to spend it without causing any harm to your business.

You must set up your small business with revenue in mind in the first 2-3 months of your business. It is actually possible. However, always have a budget reserved so that you can be able to survive in case things go tough than expected.

You Should Decide on a Legal Entity

Most of the time, filling paperwork in order to start a business can cost you a lot of money. It is because you will need to account for your municipality or city licensing, business entity or state incorporation fees and a whole lot more. Talking about this matter, it is best that you hire the professional services of a small business attorney so you know what legal issues you should consider when starting your business.

 

 

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6 Budget Tips Every Small Business Owner Should Know 

If you are running a small business, it is most likely that you are operating on a limited budget. Whether you are on the process of paying back loans that you took out in order to cover the startup costs of your small business or you are simply bootstrapping your business, it is in your best interest to save money whenever and wherever you can.

Small Business

However, without a fix and effective budget plan, it can be very difficult to track as well as manage all your finances. This is certainly true for a lot of unexpected expenses for your small business that might come up, since they often do. If all you want is to keep your business run in a smooth operation, you will also need to account for unplanned costs aside for your fixed costs. In addition to that, you will need to have a solid budget and then stick to it. We have gathered unique tips and ideas from experts that can help small business owners, regardless of the nature of their business, keep their finances in order, without having the need to go beyond their allocated budget.

1. Identify and Understand Your Risks

All business ventures have a specific degree of risk involved. In addition to that, all those risks can potentially give a big financial impact on your business. A business expert said that small business owners must have to consider and identify their short term and long term risks in order for them to plan their financial future in the most accurate and efficient manner.

Understanding the risks you can potentially have on a long term or short term basis is extremely important for every small business. Once you have figured out the threats that can hinder your productivity, a clearer solution can be made in order to prevent it from happening. This can mean allocating funds for your insurance needs, emergency planning, and many more.

2. Overestimate Your Expenses

Whenever your small business operates based on a project to project method, you will know that each client is different as well as no two projects will lead to exactly the same result. This means that usually, you cannot be able to predict when something will go over your budget.

3. Pay Attention to the Sales Cycle of Your Business

Nowadays, a lot of businesses go through slow and busy periods over the course of one year. If your business has an off season, you will need to take into account all your expenses during that period. An expert entrepreneur once suggested that it is best to use your slower periods in order for you to come up some better ways or for you to plan ahead your next sales bonanza.

4. Plan for Big Purchases Early and Carefully

A few big business expenses usually occur without you expecting them. For example, a piece of equipment has been damaged and immediate replacement is needed, or your delivery vehicle needs an expensive fix, for instance. On the other hand, planned expenses such as a new software system or store renovations must be carefully budgeted and timed in order to prevent your business from having a huge financial burden.

5. Bear in Mind that Time is Money Too

The biggest mistake that most small business owners make is the fact that they often forget to incorporate their own time into a certain budget plan. As a business owner, you should always know that time is money, most especially when you are working with individuals who are paid for their invested time. An expert entrepreneur recommended that you treat your time like your money. In addition to that, you can set external deadlines on the later part than when your project will actually be finished.

6. Revisit Your Budget Constantly

Your budget will never be consistent or static – it will evolve and change along with your small business, and you will need to keep on adjusting it basing on your profit and growth patterns. A small business expert suggested that you should revise your annual and monthly budgets in a regular manner in order to get a clearer and updated view of your business finances. It will actually help you in controlling your financial decisions since you will know exactly what your business can be able to afford to spend for a certain project vs how much you can earn for a certain period of time. This way, you will also know how much your business is capable of earning in a certain time frame.