Things You Must Consider Before You Start

What's the perfect home business for you? You've listed your skills. You've outlined your interests. You've described your family's preferred lifestyle. You've come up with a business idea. Next, consider such questions as: Are there customers for my product or service? How do I know? How will I find them? Who are my competitors? What will I charge? How will I promote my product or service? Finding the answers to these questions is the challenging and sometimes tedious homework that will help you determine your chances for success, and whether you should look for another more marketable idea.

What Is My Product?
"I bathe and groom poodles and small dogs." "I design, construct, and sell roll-top desks." "I provide accounting services to small business clients."

If you Operate a factory, wholesale outlet, retail store, Service shop, or are a contractor, you'll have to sell. No matter how
great your product is, regardless of what customers think of this, you must sell to survive.

Direct selling approaches are through personal sales efforts, Advertising and, for many companies, display - including the styling
and packaging of this item itself - in windows, at the establishment, or both. Establishing a good reputation with the general
public through courtesy and distinctive services is an indirect method of selling. While the latter should never be neglected,
this brief discussion will be restricted to direct selling methods.

To establish your business on a firm footing requires a great deal Of aggressive personal selling. You may have established
competition to conquer. Or, if your thought is fresh with minimal if any competition, you have the additional problem of
convincing people of the value of this new idea. Private selling work is almost always essential to accomplish this. If you aren't
a fantastic salesperson, seek a worker or asociate who's.

Another way to create sales is by marketing. This may be achieved Through papers, shopping newspapers, the yellow pages section of
the phone directory, and other printed periodicals; radio and tv; handbills, and direct email. The media you choose, in addition
to the message and kind of presentation, will depend upon the specific customers you wish to reach. Plan and prepare
advertisements carefully, or it will be ineffective. Most media will be able to describe the characteristics of their viewers
(readers, listeners, etc.). Ever since your first planning described the characteristics of your potential customers, you want to
match these characteristics with the media audience. If you are selling expensive jewelry, then don't market in high school
newspapers. If you fix bicycles, you probably need to.

Advertising can be quite expensive. It is wise to place a limitation upon An amount to invest, then remain within that limitation.
To help you in deciding how much to spend, study the operating ratios of similar companies. Media advertising salespeople can help
you plan and also prepare ads for you. Be sure to tell them your budget limitations.

A third method of sparking sales is effective displays both in Your place of company and out it. If you've had no prior experience
in screen work, you will want to examine the subject or turn the job over to somebody else. Observe displays of other businesses
and read books, trade publications, and the literature provided by equipment manufacturers. It could be smart to employ a screen
expert for your opening display and unique events, or you may get the help of one on a part-time basis. Much is dependent upon
your kind of business and what it takes.

The proper number and types of marketing campaign to use vary from business to business and from owner to owner. Some companies
prosper with low-key sales efforts. Others, such as the used-car lots, thrive on competitive, hoop-la promotions. In any case, the
importance of successful selling cannot be over-emphasized.

On the other hand, don't lose sight of your major goal - to Earn a profit. Everyone can generate a large sales volume selling
dollar bills for ninety bucks. But that will not last long. So keep control of your own expenses, and cost your product carefully.

Record Keeping. 1 essential element of business management is the keeping of adequate records. Study after study shows that many
supervisor failures can be attributed to inadequate records or the owner's failure to make use of what information was accessible
. Without records, the businessperson cannot see in advance that way the company is going. Up-to-date records may predict
impending tragedy, forewarning one to take action to avoid it. While additional work is required to keep an adequate set of
records, you will be more than paid for the effort and cost.

If You Aren't prepared to maintain adequate records - or have somebody Keep them for you - you should not attempt and run a small
business. At a minimum, records are needed to substantiate:

1. Your yields under taxation laws, such as income tax and social Security laws;

2. Your request for credit from equipment manufacturers or a loan From a lender;

3. Your claims about the business, in case you wish to market it.

But most important, you need them to run Your Company successfully And to increase your profits. With a decent. Yet simple,
bookkeeping system you may answer such queries as:

How much company am I doing? What are my costs? Which seem to be too large? What's my gross Profit margin? My net profit? How much
am I piling on my charge enterprise? What is the state of my working capital? How much cash do I have on hand? How much in the
bank? How much do I owe my Providers? What is my net worth? That is, What's the value of my possession of The enterprise? What are
the trends in my Receipts, costs, gains, and net worth? Is my financial situation improving Or growing worse? How do my resources
compare with what I owe? What's the Percent of return on my investment? How many cents out of each dollar of Earnings are net
gain? Answer these and other questions by planning and studying balance sheets and profit-and-loss statements. To do this, it is
Important that you record information about transactions as they happen. Keep This data in a detailed and organized manner and you
will be able to answer the above questions. You'll Also possess the answers to these other vital questions About your company as:
What services or products do my clients like best? Next best? Not at all? Do I take the merchandise most frequently requested? Am
I Qualified to render the professional services they need most? How a Lot of my charge Customers are slow payers? Shall I switch
to cash only, or use a charge card Charge plan?

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