Secrets of firm Success

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Over half of all new businesses fail in the first five years. Only one in ten will last ten years. Know the odds and plan to beat them with basic, tried and true company sense; beginning with:

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o Motivation and stamina
o Good research and planning
o Good option of company (fill a need)
o Good location
o Good management
o Good marketing strategy
o Good financing
o Good employees

Know the Laws

When planning your business, be sure to find out about applicable zoning for the location you are considering, considerable company licenses, insurance, etc.

If you have employees in your business, it is foremost to be knowledgeable about employment laws relating to work hours, minimum wage, workers' protection equal opportunities, workers' compensation and required guarnatee for workers.

Hidden Costs

If you work for yourself, you will be required to pay your own communal protection tax and federal and state withholding on a quarterly basis. You will also need to cover the cost of our condition guarnatee and relinquishment benefits. If you have employees, you will have to cover these costs for them also.

Consult with a lawyer, accountant or other company professional about tax requirements and employment laws.

Finding the Money

Every entrepreneur needs money to get started. Funds may come from your own savings, the resources of friends, house or investors. A base place to regain financing is from a bank. Before going to a bank or other financing sources, it is foremost that you make some information about your company so that you will be prepared to sass questions, be clear about your goals and financial needs and you will be more victorious at securing a loan.

Business Structures

There are some types of company structures to consider before beginning your own business. These include: 1) sole proprietorship, 2) partnership, 3) corporation, 4) tiny liability corporation, 5) non-profit corporation and 6) cooperative. Each structure has advantages and disadvantages about decision-making, profit-sharing and taxation. It is a good idea to research each structure and then talk to an accountant, a lawyer or other company professional before choosing on which structure will work best for your business.

The company Plan

A company plan includes the following information:

o Name of Business
o Name of Owner(s)
o Location and Phone whole of Business
o Definition of your company (1-2 sentences)
o What you are offering (selling)
o What your goals are
o What makes it unique or better
o Financial Analysis
o Start-up costs; rent, advertising, inventory, equipment, utilities, etc.
o Estimated sales, expenses, profits
o One-year budget
o Marketing Analysis
o Definition of your market
o Evaluation of your competition
o Price structure for your services or goods
o An advertising plan
o A plan for selling or distributing your goods or services

This information should be organized in a clear way. The library has some texts which will help you make your company plan. some top-rated software packages also will help you write your company plan.

In increasing to your company plan, regain the following information:

o Sources of Collateral - personal assets that you have which you can offer as protection for a loan (real estate, investments, cash, personal property, etc.). A bank will almost legitimately need collateral.
o Down cost - cash that you are providing for your company start-up. Banks will expect you to make a personal financial venture in your business.
o Credit report - documentation of all participating owners' personal net worth.
o Management capability - show resumes or outlines of job-related caress and education of all managers.
o Ability to repay the loan - cash flow projections including monthly loan payments from the budget in your company plan.

Organize all your information in a clear way. Make two copies - one for you and one for the loan officer. Make an appointment ahead of time. sass all questions legitimately and directly. If one bank turns you down, try another. Organization, thoroughness and planning are foremost to running your company and in getting a loan.

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