Posted tagged ‘business plans’

Starting a New Business Series

June 5, 2012

Starting a New Business Series

By

Michael Fanghella

Managing Director

Step Number 1

If you are starting a new business have a new idea what ever you plan to do next do it like it is “On Purpose” please.

Starting a new business involves many steps.  You may borrow business finance for the purpose of starting a new business or for expending the established one.  Starting a new business is the easy part.  One of the most important things to do when starting a new business is to prepare a written business plan.  Starting a new business can be  exciting and challenging.

That’s what starting a new business is all about.  Quick money is not what lies behind starting a new business overnight.  Starting a new business online is easy and with the right help you will be making money but usually not quickly.

It may be intimidating for some people.  When you are starting a new business be it online or otherwise, you need have a website as it has become the acceptable means of communicating your presence.  When starting a new business there are certain decisions that you need to make.

The reality is that you probably don’t know everything and need the expertise of others.  The fact is you don’t even need a bank to start a business.  If you want to start a business, you need to think it out.  Is it feasible, is it cost efficient and can you reproduce the concept consistently at the profit margins you have projected. Marketing and sales should be a fore thought not an after thought.  Once you have the name  (which I suggest you make a s a working title until sure) which along with other things, you need to really sit down and plan the steps to start the business.  As a rule of thumb, your personal investment will need to approximately 25% to 100%  the total start-up costs of your business.

As a general rule of thumb, you will need $1.50 in quality collateral for every $1 you want to borrow, but that doesn’t mean anyone (bank wise) will lend to you unless you provide significantly more collateral, and experience and personal credit worthiness.

Like I said starting a new business requires   extensive planning and preparation which is quite time consuming.

One of the first steps in starting a new business is adequate research and planning.  Consider starting a new business in the Town you live in first.   IBIS World  recently published a  report  on the top 11 industries for starting a new business in 2012.  www.info.com/IbisworldIndustryReport

Starting a new business can be a little overwhelming in the beginning.  Therefore if you are considering starting a new business at all, then all these things will come up.  But don’t do everything all at once start with the above research on whether the idea will fly and can you produce it profitably.  Too many time fools rush in disguised as entrepreneurs where angles fear to tread and get too far ahead of the curve and crash and burn.  remember at least 50% of a small businesses fail in the first 5 years. Mostly because of either lack of capital resources or lack of business experience.

My next article will be on marketing a new business from a point of view away from the conventional norm.  I can be reached by visiting our website www.santafeadvisoryservices.com or email michael@santafeadvisoryservices.com

Business Plans – Don’t Start Without One

March 20, 2012

Business plans are universally reviled among tech startups, both on the entrepreneur side and among investors. They are not all alike and neither are angel investors, venture capitalists and loans. They are also used when approaching potential lenders or investors that have an interest in a particular business venture. They are almost universally used to secure funding for business ventures. Business plans are used in some primary and secondary programs to teach economic principles.

Business plans can be extremely complex, but for most small businesses, this simplified business plan will be sufficient. They are key decision making tools. They are flexible and offers greater efficiency in the use of minutes by your business. They are not historical documents about a company’s past performance. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community.

Business plans aren’t obsolete anymore than letters are. They are essential when starting a business. They are organized to address major concerns and interests of their intended audience. They are written for a variety of purposes and for different intended readers. Business plans are fresh for only 2 or 3 months.

Business plans are the preferred mode of communication between entrepreneurs and potential investors. They are prepared as an integral ingredient of procuring debt capital from potential investors, bankers and other lenders. They are dynamic and can be changed as per your business’s requirements.

Professional business plans are often some of the first things new small business owners consider. You need to know the direction you are going, where to focus, who your customers are or will be. A business development plan will put in writing your goals, budget and ideas. Of course, it may also be a prerequisite for a small business loan. But more important a revised business plan for an existing business is just as important so that you are prepared for the next wave of competition in your industry.

Santa Fe Advisory Services has over 25 years and multiple success stories and can start this process with you just by your contacting us at 619 550 1198, or michael@santafeadvisoryservices.com