BENEFITS OF BUSINESS PLANNING

BENEFITS OF BUSINESS PLANNING

June 10th, 2011 | Author: Annie Rose

The systematic business planning helps the business to derive its advantages and get benefits out of them. The benefits of business planning include

• Business Planning helps the company to formulate objectives and goals clearly. The company formulates objectives after discussing thoroughly with superiors, colleagues and sub-ordinates. These objectives help the company to achieve stability of business and maximize profits.
• Business planning helps to avoid piece-meal approach and to have integrative approach.
•  Business planning helps to view the organization in total rather than department wise
• Business plan aims at the long range plan rather than short-range plan
• Business plan integrates the company plan with the national plans and priorities
• Business plan takes in to consideration the environmental factors. Technological factors influence the business plan significantly.

Technology has been upgraded continuously. The changes in technology are pivotal, resulting in high technology.

• Liberalization, privatization and globalization not only brought significant changes in the economy, but they have intensified the competition. This resulted in tough competition between domestic and foreign companies.
• . Business plan help the company to anticipate the political changes and developments in the national and international scenarios and their possible impact on the business
• . Effective business plan helps the company to achieve its objectives and goals
• . Effective business plan certainly contribute for the achievement of high rate of profits and increases in earnings per share
• . Business Plan helps to determine potential growth and profit.

source: http://www.bulo8.com/business-planning-factors/benefits-of-business-planning

Advantages and Disadvantages of Partnership

Advantages and Disadvantages of Partnership

BY ADRIAN – MARCH 1, 2010
POSTED IN: PARTNERSHIP

A partnership is commonly formed where two or more people wish to come to together to form a business. Perhaps they have a common business idea that they wish to put to the test or have realised that their skills and talents compliment each others in such a way that they might make a good business team. Forming a partnership seems like the most logical option and, in some cases, it is. Running a small business with a reasonably low turnover, a partnership is quite often a good choice of legal structure for a new business. The way a partnership is set up and run as well as the way it is governed and taxed often make it the most appealing form of business. However, there are circumstances where this isn’t the case.

Being a partnership, the business owners necessarily share the profits, the liabilities and the decision making. This is one of the advantages of partnership, especially where the partners have different skills and can work well together. However, it can obviously present some problems. Over the years, many partnerships have turned sour. Family and friends go into business together and end up falling out on a personal or business level and it all ends badly. This is one of the major disadvantages of partnerships over other business models, but it’s important to be able to balance the advantages and disadvantages.

Advantages of Partnership

• Capital – Due to the nature of the business, the partners will fund the business with start up capital. This means that the more partners there are, the more money they can put into the business, which will allow better flexibility and more potential for growth. It also means more potential profit, which will be equally shared between the partners.
• Flexibility – A partnership is generally easier to form, manage and run. They are less strictly regulated than companies, in terms of the laws governing the formation and because the partners have the only say in the way the business is run (without interference by shareholders) they are far more flexible in terms of management, as long as all the partners can agree.
• Shared Responsibility – Partners can share the responsibility of the running of the business. This will allow them to make the most of their abilities. Rather than splitting the management and taking an equal share of each business task, they might well split the work according to their skills. So if one partner is good with figures, they might deal with the book keeping and accounts, while the other partner might have a flare for sales and therefore be the main sales person for the business.
• Decision Making – Partners share the decision making and can help each other out when they need to. More partners means more brains that can be picked for business ideas and for the solving of problems that the business encounters.

Disadvantages of Partnership

• Disagreements – One of the most obvious disadvantages of partnership is the danger of disagreements between the partners. Obviously people are likely to have different ideas on how the business should be run, who should be doing what and what the best interests of the business are. This can lead to disagreements and disputes which might not only harm the business, but also the relationship of those involved. This is why it is always advisable to draft a deed of partnership during the formation period to ensure that everyone is aware of what procedures will be in place in case of disagreement and what will happen if the partnership is dissolved.
• Agreement – Because the partnership is jointly run, it is necessary that all the partners agree with things that are being done. This means that in some circumstances there are less freedoms with regards to the management of the business. Especially compared to sole traders. However, there is still more flexibility than with limited companies where the directors must bow to the will of the members (shareholders).
• Liability – Ordinary Partnerships are subject to unlimited liability, which means that each of the partners shares the liability and financial risks of the business. Which can be off putting for some people. This can be countered by the formation of a limited liability partnership, which benefits from the advantages of limited liability granted to limited companies, while still taking advantage of the flexibility of the partnership model.
• Taxation – One of the major disadvantages of partnership, taxation laws mean that partners must pay tax in the same way as sole traders, each submitting a Self Assessment tax return each year. They are also required to register as self employed with HM Revenue & Customs. The current laws mean that if the partnership (and the partners) bring in more than a certain level, then they are subject to greater levels of personal taxation than they would be in a limited company. This means that in most cases setting up a limited company would be more beneficial as the taxation laws are more favourable (see our article on the Advantages and Disadvantages of a Limited Company).
• Profit Sharing – Partners share the profits equally. This can lead to inconsistency where one or more partners aren’t putting a fair share of effort into the running or management of the business, but still reaping the rewards.

source: http://blog.thecompanywarehouse.co.uk/2010/03/01/advantages-and-disadvantages-of-partnership/

Home Business Marketing Tips

by Janet Attard

Need customers for your home business? Wondering what successful home businesses do that you're not doing? Here are several suggestions to help you promote your business more effectively.

You had high hopes when you started your home business. You figured you’d get all the business you need for your fledgling startup by posting on your Facebook page and telling all your off-line friends and former business associates about your new home business. But customers have been few and far between. All those contacts who told you to call them when you launched? Most aren't returning your voice mail.  And the people who do express some initial interest in your product or service don’t want to spend the money to buy it.

What can you do? How can you keep your home business dreams alive? What are successful home businesses doing that you aren’t doing?

Here are several suggestions to help.

Expand your network. Your friends and family may be supportive of what you’re doing but they may not be the best sources of referrals. Consider who would make a good customer and then look for ways to meet those people. Chamber of commerce meetings, PTA meetings, local civic associations, regional trade shows, professional conferences, and phone calls can all be effective. So, too, can networking online through social media groups and sites, and online forums. Don’t spam the sites or groups with ad for your products or service. Just participate in and contribute helpful information to the groups that are likely to include prospects for your services and you will get known.

Get a website set up and be sure it looks professional. No matter how many social media groups you participate in or how many local networking groups you belong to, potential customers are likely to take a look at your website before they call you to discuss your services. If you sell products, selling online make it easy for your customers to buy no matter what time of the day or night they want to shop.

Look for needs you can fill and ask for business. I ran a small business forum on America Online for 11 years because I got on the phone one day in early 1990 and called them to ask about writing a column for them. Remember, if you don’t ask for business, know one will know you want it.

Talk to people. Anyone and everyone, as circumstances allow. The woman next to you at the “friends” table at a wedding or the man sitting in the seat next to you on the airplane, might just be a customer. Instead of staring into space or twiddling your thumbs, strike up a conversation. Find out what they do, and eventually they’re likely to ask what you do. I know of several businesses including my own that brought in significant new business through just such conversations.

Advertise on the web. Depending what you sell, pay per click advertising can be an affordable way to find targeted customers for your home business. Even if you just sell to consumers or businesses in your local area, pay per click can be helpful.  A surfer looking for a local dentist, might search for the phrase “dentist in Centereach” and be directed to a web site that has a phone number to call a Centereach dentist.

Don’t tell people you run a home business. Although more than half of the small business in the US are home based, many people still think it's risky to do business with a home business. If you rented office space at 33 West Main St. for your office support service business, you probably wouldn’t tell people you run a  “West Main Street” business. You'd say you provide office support services. So, why say you are in a home business? Home is just the location of the office. It’s the business – the product or service your provide – that’s important.

Give a demonstration. Contact your public library to see if they’d be interested in a demonstration of how pottery is made. Build a website for a buddy for free, and use the site as part of your portfolio. Offer to decorate a local restaurant or coffee shop with your artwork (and perhaps to give them a commission on any works that sell as a result of the display.

Learn from others in your industry. Attend meetings where people talk about their successes and problems. Read trade publications, get to know who’s who in the industry, then find ways to introduce yourself to people you’d like to get to know. If you can’t meet them in person, try calling them. Don’t waste their time. Have a specific question or problem in mind that you’d like them to help with. Then follow up with a note thanking them and telling them how much you appreciate their help.

Stay in touch. Just because a prospect doesn’t buy today doesn’t mean they won’t buy. This is particularly true if you sell to businesses. Some industries and some products have very long buying cycles. Even if the initial prospect doesn’t buy, they may give your name to someone who does.

source: http://www.businessknowhow.com/homeoffice/hbmarket.htm

31 Low-Cost Ways to Promote Your Business

by Janet Attard

Starting a business on a shoestring? Looking for ways to stretch your small business marketing budget? Here are 31 low-cost, high-impact methods to advertise and promote your business.

What's the best way to promote your business? How can you advertise your business and get your name in front of potential prospects when money is tight or you're just starting up? How can you get the word out about your business in the most affordable way?

Promoting a business is an ongoing challenge for small businesses. Whether you're just starting out or have been in business for years,
 these proven marketing strategies will help your business find new customers without spending a fortune.

1. Plan your attack. Define who your best prospects are, and then determine the best way to reach them. Be as specific as possible. Is the decision maker the CTO of the company, the director of human resources, or a 37-year-old working mom? Will you find them on Twitter, Google Plus, Pinterest or Facebook? What about in-person networking at local business meetings? Will they be searching for your type of product on Google or Bing? Do you want to start promoting your business to them at the start of their buying cycle, or when they're about ready to pull out their credit card and make the purchase.  Write your answers down, and refer to them before you start any new marketing tactic.
2. If you don't have a website, get one set up. If you can't afford to have someone custom-design your website, put your site up using one of the companies like SiteSell.com or HomeStead.com that provide templates and tools that make it easy to create a basic website.
3. Set up a free listing for your business in search engine local directories. You can do this at Google.com/local/; Bing.com/local/; and listings.local.yahoo.com/ Be sure to include your website link and business description.
4. Set your business profile or page up on LinkedIn, Facebook, and Twitter. Be sure your business profile includes a good description, keywords and a link to your website. Look for groups or conversations that talk about your type of products or services and participate in the conversations, but don't spam them with constant promos for what you sell.
5. If you're just starting out and don't have a business card and business stationery, have them made up -- immediately. Your business card, letterhead and envelope tell prospective customers you are a professional who takes your business seriously. Be sure to list your website address on your business card and, letterhead and any handouts you create.
6. Get your business cards into the hand of anyone who can help you in your search for new clients. Call your friends and relatives and tell them you have started a business. Visit them and leave a small stack of business cards to hand out to their friends.
7. Talk to all the vendors from whom you buy products or services. Give them your business card, and ask if they can use your products or service, or if they know anyone who can. If they have bulletin boards where business cards are displayed (printers often do, and so do some supermarkets, hairdressers, etc.), ask if yours can be added to the board.
8. Attend meetings of professional groups,and groups such as the Chamber of Commerce, Rotary Club, or civic associations. Have business cards in a pocket where they are easily reachable. Don't forget to ask what the people you speak with do, and to really listen to them. They'll be flattered by your interest, and better remember you because of it.
9. Pay for membership in those groups that attract your target customers.If the group has a website and publishes a list members on the site, make sure your name and website link get added. Once it is added double check to be sure your contact information is correct and your website link isn't broken.
10. Become actively involved in 2 or 3 of these groups. That will give you more opportunity to meet possible prospects. But remember: opportunists are quickly spotted for what they are, and get little business. While you won't want to become involved in many organizations that require a lot of your time in, you can --and should-- make real contributions to all of them by offering useful ideas and helping with projects when possible.
11. Look for something unusual about what you do, and publicize it. Send out press releases to local newspapers, radio stations, cable TV stations, magazines whose audiences are likely to be interested in buying what you sell. Be sure to post the press releases on one or more online press release services, too, being sure to include links to your website. To increase your chance of having the material published, send along a photo (but not to radio stations) with your press release. Editors of printed publications are often in need of "art" (drawings or photos) to fill space and break up the gray look of a page of text.
12. Write an article that demonstrates your expertise in your field.Send it to noncompeting newspapers, magazines, and websites in your field that accept submissions from experts. Be sure your name, business name, phone number, and a reference to your product or service is included at the end of the article. If the editor can use the article you get your name in print, and possibly get your contact information printed for free, too.
13. Publicize your publicity. Whenever you do get publicity, get permission from the publisher to reprint the article containing the publicity. Make photocopies and mail the copies out with sales letters or any other literature you use to market your product or service. The publicity clips lend credibility to the claims you make for your products or services.
14. Ask for work or leads.Contact nonprofit organizations, schools and colleges, and even other businesses that have customers who may need your services.
15. Network with others who are doing the same type of work you are.Let them know you are available to handle their work overloads. (But don't try to steal their customers. Word will get out, and will ruin your business reputation.)
16. Offer to be a speaker. Industry conferences, volunteer organizations, libraries, and local business groups often need speakers for meetings. You'll benefit from the name recognition, contacts and publicity.
17. If your product or service is appropriate, give demonstrationsof it to whatever groups or individuals might be interested. Or, teach others how to use some tool you use in your work.
18. Put videos of your product or service on YouTube and other video-sharing and slide-sharing sites.
19. Find out what federal, state, and local government programs are in existence to help you get started in business. Most offer free counseling, and some can put you in touch with government agencies and large corporations that buy from small and woman-owned businesses
20. If you are a woman-owned or minority-owned business look into getting certifiedby private, state or federal organizations. Many purchasing agents have quotas or guide for the amount of goods and services they need to buy from minority- and woman-owned businesses.
21. Send out sales letters to everyone you think might be able to use what you sell.Be sure to describe your business in terms of how it can help the prospect. Learn to drop a business card in every letter you send out. Follow up periodically with postcard mailings.
22. If you use a car or truck in your business have your business name and contact information professionally painted on the side of the vehicle. That way your means of transportation becomes a vehicle for advertising your business. If you don't want the business name painted on the vehicle, consider using magnetic signs.
23. Get on the telephone and make "cold calls."These are calls to people who you would like to do business with. Briefly describe what you do and ask for an appointment to talk to them about ways you can help them meet a need or solve a problem.
24. Get samples of your product or your work into as many hands as possible.
25. Offer a free, no obligation consultation to people you think could use your services. During such consultations offer some practical suggestions or ideas--and before you leave ask for an "order" to implement the ideas.
26. Learn to ask for referrals. Ask existing customers, prospects and casual acquaintances. When you get them, follow up on the leads.
27. Use other people to sell your product or service.Instead of (or in addition to) selling your products yourself, look for affiliates, resellers or people who will generate leads for you in return for a commission on sales. Be sure your pricing structure allows for the fees or commissions you will have to pay on any sales that are made.
28. Get together with businesses who serve the same market, but sell different products and services. Make arrangements to pass leads back and forth, or share mailings.
29. Have sales letters, flyers and other pertinent information printed and ready to go. Ask prospects who seem reluctant to buy from you: "Would you like me to send information?" Follow up promptly with a note and a letter that says, "Here is the information you asked me to send
30. Run a contest.Make the prize something desirable and related to your business -- it could be a free gift basket of your products, for instance, or free services.
31. Test buying Pay Per Click (PPC) advertising on the search engines. If you are not yet advertising on search engines search for offers that give you $50 or $75 in free advertising to start. Read the directions for the service you plan to use, and very carefully watch what you spend on a daily or more frequent basis until you are comfortable using PPC ads and see you are getting a return on your investment.

source: http://www.businessknowhow.com/marketing/24waysto.htm

7 Smart Marketing Moves for Your Small Business

Do you own a small business? It may be good. However, if you get a little more customer than the usual, then it adds up to more profits. Try some smart moves to give your small business a smarter look.

Small business means that you have invested a little capital, so low-cost measures are highly effective to have higher conversion rates. Below you will find seven tips that can help you to attract more customers and generate high ROI.

1. Advertising Like Big Brands Does Not Work

Big brands acclaim their name and due to recognition, it is possible for them to increase their future sales just with their name. But your small business cannot afford to do that. What way you can reciprocate it? – You can design your advertising to produce sales. For example, you can include offers, indeed a chic way to attract prospective customers.

2. What About Offering A Cheap Version?

If you acquire prospective customers, then remember that they may be not ready to pay the price that you assign. Others are interested in paying out a lower price than in getting better quality. Well, you can avoid losing sales to many customers by offering stripped down version of your product that too at a lower price.

3. You Can Offer A Premium Version To Customers

Cheap price is not liked by everybody. Many agree to pay a higher price just to get a premium product. In this case, you can boost up your sale and total revenue just offering more comprehensive product or service or by combining several products in a special package that too offered at a higher price.

4. Try Some Extraordinary Marketing Tricks

Why don’t you try some unconventional marketing methods?? This will surely beat your competitors. This will help you to sketch out some profitable ways to generate sales. You can try printing a small ad on a postcard and mail it to the prospect in the targeted market. This small ad can at times drive huge traffic and generate quality sales leads at any moment.

5. Spruce Your Ads

You can make the size of your ads cut short, so that you are able to run more ads at the same price. You may even get surprised to find that same short ad gets a better response than a longer version.

6. Tie Up With Other Small Business

You contact some small business who is non-competitive by nature. Tell them that you can publicize their product or services to your customers, but in return, they have to publicize your products to their customers. This is called cross-promotion and this is able to cater large sales that too at a low-cost.

7. Seek Some Advantage From Your Customers

Customer is the king, and to keep them happy you can try your level best. They already trust you and so it becomes easier to bring business from them. Take advantage of this and offer them some special deals. Like announce them about your new products before you declare them in the general market.

Converting your customers into publicity agents is another good idea. If they are able to tell their associates and cater extra traffic then provide them with incentives. Endorsement from trusted customers is more valuable and cheaper than the advertising.

These seven marketing tips are simple and yet effective try them out and make your small business get that trendy look like the bigger ones.

Source:http://www.pinoybisnes.com/grow-your-business/7-smart-marketing-moves-for-your-small-business/

Starting a Successful Business

Selecting to venture out and start a business is one of the hardest decisions entrepreneurs have to make, leaving the security and income of a previous job, to invest in an uncertain future can be a daunting decision for anyone. But once the decision has been reached, the next step is to select the right business or business program.

When selecting a business opportunity to get involved with, you want to consider a few important issues. These issues may seem simple, but the majority of entrepreneurs do not consider all of them, and they are cost, marketability, industry profile, and income potential.

The most important issue to discuss is cost. This includes initial investment, the initial amount invested to purchase the business opportunity or program; this can range from a hundred dollars to several thousand dollars. Start-up cost is the amount you will need to start the business, either from home or in an office setting, the equipment you have to buy plus supplies. And finally there is the operating cost needed to keep the business going.

Marketability, is there enough sources of new business in you market to sustain your business venture? That is what is meant by marketability. Does the business opportunity or program provide you with a product or service that can be marketed to enough consumers to make investing in their program worth the effort?

Another important factor to consider is the industry profile, is this a new industry or has it been in existence for awhile? The industry profile lets you know how well you venture will be accepted in the markets you are trying to reach. The best indicator of industry profile is market research, by compiling a list of questions about you new venture, and asking your potential customer base these questions, you can get a idea if you venture will be needed.

The last issue is always, income potential. You are starting a business because you want to be independent, but you do not want to go broke in the process. Income potential is what you expect to earn if you apply yourself to the business venture, this should be enough to sustain or improve you current lifestyle.

If you are looking to start a new business venture that receives a checkmark in all of the above mentioned issues, then Consumer Mortgage Reduction Service has an opportunity for you in the Biweekly Equity Acceleration and Auditing Industry. To find out more visit their website at:http://www.consumermortgagereduction.com


Source:http://www.streetdirectory.com/travel_guide/1068/business_and_finance/starting_a_successful_business.html

Five Secrets to become a successful businessman

In order to become a successful businessman on your own feet requires not only courage, determination but also the ability to look forward.

There is no formula for success; however, most of successful businessmen agree on the following elements. If you wondered how to be a successful businessman, then you might want to read on the following business success tips:

Think of Success

In order to succeed, you must be ambitious

Every story of success begins with big ambition and dreams. You also need to have a clear vision on what you want to get and where you want to be. But dreaming is not enough. You must draw out details of your success in your mind so that you feel it and grasp it in your palm.

Be enthusiastic about what you do

Business success will easily come to you if you are enthusiastic about everything you have done. If you like your current business, you will surely try to go after it to the end. On the contrary, if you hate it, how can you succeed in it?

Focus on you strength

Nobody is perfect. Each person has their own strengths and weaknesses. Therefore, you need to realize what your strengths are and focus on them. Your chance of success will be much better if you orient your effort towards what you are most good at.

Never worry too much about failing

Being a businessman, you must totally believe in your goals and abilities to reach such goals. You need to strongly believe in yourself, in your ability to succeed. The higher your belief is, the faster you will get to success.

Suitable Planning

In order to succeed, you have to realize and specify your goals to make its foundation toward success. You need a plan for every activity in every day on the way to your expected success.

Entrepreneurial Learning

Flying high will only be possible with spreading out your wings! If you really love to do something what you enjoy and are passionate about, this is the start. Five it all what you possibly have and focus on it completely. Keep your one eye open even if you fall asleep because you can’t slip. 

source:www.chasekileleplanet.co.ke/raising-money/five-secrets-to-become-a-successful-businessman