Checklist for Starting a Fertilizer Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Fertilizer business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
For more insightful videos visit our Small Business and Management Skills YouTube Chanel.
A Step by Step
Guide to Starting a Small Business
This is a
practical manual in a PDF format, that will walk you step by step through all the
essential phases of starting your Fertilizer business. The book is packed with
guides, worksheets and checklists. These strategies are
absolutely crucial to your business' success yet are simple and
easy to apply.
Copy the following link to your browser and save the file to your PC:
https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf
How To Prepare a
Budget for a Service Business
Budgeting is a tool for dealing with
the future. It helps you turn expectations into reality.
An increase in profit should be the
first consideration when you think about the prospect for your
business in the next year. Working up a budget helps you to
determine whether or not your profit goal is within reach.
When the figures are all together,
you have answers to questions such as: What sales will be needed
to achieve the desired profit? What fixed expenses will be
necessary to support these sales? What variable expense will be
incurred in producing the services?
Because business is not a
cut-and-dried affair, the first budget often will uncover
problems and suggest choices. Working up additional budgets will
help you decide what changes to make in order to have a workable
plan for next year.
Many owner-managers run their
businesses without a planned goal. In trying to survive from
week to week and from month to month, such owner-managers
overlook an important management tool-budgeting. Whether the
plan is for next year, for the next 3 years, or for the next 5
years, budgeting can help just as a map helps you to keep on the
right road.
Why Budget
A budget is a plan that enables you
to set a goal and list the steps which are necessary to reach
that goal. Thus, a budget helps you think about what you want
your business to do in the future. By planning, you are in a
better position to act to prevent crises.
In its simplest form, a budget is a
detailed plan of future receipts and expenditures - projected
profit and loss statement. Thus, once the period for which you
have budgeted is completed, you can compare actual results with
anticipated goals. If some of your expenses, for example, are
higher than you expected, you can start looking for ways to cut
them. Conversely, if you have fallen short of your goal, you may
want to look for ways to increase your income.
Budget makers can start either with a
forecast of sales and work down or with a forecast of profits
and work up. Most businesses use the latter method. In other
words, you decide what profit you want to make and then list the
expenses that you will incur in order to make that predetermined
profit.
A Plan For Increased Profit
Before you can use a budget as a plan
for increased profit, you have to be sure that your present
profit is what it should be. In a service business, the year-end
profit should be large enough to make a return on your
investment and a return on your own work-pay.
Value Of Owner's Service.
Skilled crafts people who own service businesses are
kidding themselves if their firms' profits are less than they
can earn working for someone else. Your net profit after taxes
should be at least as much as you can earn if you worked at your
trade for a weekly pay check.
Return On Investment.
The year-end profit is too low it does not also include a
return on the owner-manager's investment. That investment
includes the money you put into the firm when you started it and
the profit of prior years which you left in the firm - retained
earnings. You should check to be sure that the rate of return on
your investment is what it should be. Your trade association
should be able to provide guidelines about the rate of return on
investment in your line of business. Your accountant and banker
are also sources of help.
Your Targeted Income.
After you know what you made last year, you can set a
profit goal for next year. Be sure that your goal includes a
return on your services and a return on your investment. Your
goal should also include an amount for State and Federal taxes.
For example, if you want to make 10,000 after taxes, your goal
before taxes should be about 13,333. You have to add this 3,333
to take care of State and Federal taxes. Keep in mind that the
larger the goal, the larger the amount which will have to be
added to account for taxes. Your accountant can help you
determine that amount.
Can You Reach The Goal
Once you have decided on your profit
target, the next step in preparing a budget is to determine
whether you can achieve this. To do this, you must project your
fixed costs and your variable costs. From these three figures -
profit, fixed expenses, and variable expenses - you can
determine your "hoped for" total income.
In gathering figures, keep in mind
that without accurate information planning becomes guessing. The
owner-manager who has never budgeted should talk with an
accountant about a recordkeeping system. Changes may be needed
to provide the necessary budget information. It may be that your
present system does not break costs down into fixed and variable
expenses, or it may be that you need to have a profit and loss
(or income) statement at more frequent intervals to determine
the seasonal fluctuations of your revenues and expenses.
Fixed Expenses.
Regardless of sales, fixed expenses stay the same. Several
examples of fixed expenses are insurance, rent, taxes on
property, wages paid to salaried employees, depreciation of
equipment, interest on borrowed money, building maintenance
costs, office salaries, and office expenses.
Variable Expenses.
This type of expense varies with sales. In some service
businesses, the cost of labor is the biggest factor. Sales
commissions, payroll taxes, insurance, advertising, and delivery
expenses are other examples of variable expenses.
Determine Your Expected Service
Income. Your expected service income
contribution is the difference between sales and the variable
expenses that are necessary to produce these sales. When this
difference equals fixed expenses and the desired profit, you
have a workable budget.
Compare your financial plan occasionally
with real operations figures. With powerful records you can
accomplish this. Then, where
discrepancies appear it is
possible to take corrective actions before it's too late. The
right decisions for the ideal corrective
action depends upon
your own understanding of management methods in purchasing,
pricing, selling, selecting and training staff,
and tackling
other management issues.
You probably are thinking you
are able to employ a bookkeeper or a Accountant to deal with the
record keeping for you. Yes, you
can. But remember two very
important facts:
1. Supply the accountant with true
input. If you buy something And don't record the sum in your
organization checkbook, the
accountant can't enter it. Should
you sell something for cash and don't record it, then the
accountant won't know about it. The
documents the accountant
prepares will probably be no greater than the information you
provide.
2. Utilize the documents to make decisions. If
you moved to a physician And he told you you were sick and
needed certain medicine
to get well, you would follow his
advice. Should you pay an accountant and he informs you your
earnings are down this season, do
not hide your head in the
sand and pretend that the problem will go away. It won't.
Business Management Roll in Personnel Selection. If your
business Will be large enough to require outside assistance, a
significant responsibility will be the choice and coaching of
one or more workers. You may begin with relatives or business
partners that will help you. But if the company grows - as you
hope it will - the time will come when you must select and train
personnel.
Careful selection of personnel is vital. To
Pick the right Employees decide beforehand what you need each
one to do.
Then search for applicants to fulfill these
particular needs. In a small Business you may need flexible
employees who can shift
from task to task as needed. Include
this in the description of the jobs you would like to fill. At
precisely the same time, look
ahead and organize your hiring
to assure an organization of people capable of performing every
crucial role. In a retail store, a
salesperson may likewise
do stock-keeping or accounting at the outset, but as the
business grows you'll need sales people,
stock-keepers and
bookkeepers.
Once the job descriptions are written, line
up applicants whom To make a choice. Do not be swayed by clients
who might suggest
relatives. If the applicant does not
succeed, you may drop a client in addition to an employee. Some
sources of potential new
employees are:
1. Tips with
friends, business acquaintances. 2. Employment agencies. 3.
Placement bureaus of top schools, business schools, and
colleges. 4. Trade and industrial institutions. 5. Help-wanted
advertisements in neighborhood papers.
Your next job is
to screen want ad answers or application Forms delivered by
employment agencies. Some applicants will be
eliminated sight
unseen. For each of the other people, the application form or
letter will act as a foundation for the interview
that ought
to be conducted in private. Put the applicant at ease by
describing your business generally and the occupation in
particular. As soon as you've completed this, invite the
applicant to speak. Selecting the proper person is very
important.
Consult your questions carefully to learn
everything about the applicant that's pertinent to this job.
References are a must, and should be assessed prior to
making a final decision. Check through an individual visit or a
telephone
call directly to the applicant's immediate previous
manager, whenever at all possible. Confirm that the information
given you is
correct. Consider, with conclusion, any negative
remarks you hear and what is not said.
Checking
references may bring to light significant Details Which may help
save you money and future inconvenience.
Personnel
Training. A well-selected worker is only a possible Asset to
your business. Whether or not he or she becomes a true
asset
is dependent upon your training. Remember:
To allow
adequate time for instruction. Not to anticipate too much from
The trainee in too brief a time. To let the employee learn
by
doing under actual working conditions, with close supervision.
To follow up on your training.
Check the employee's
operation after he or she has been at work For a time.
Re-explain important points and short cuts; bring the
employee current on new developments and encourage inquiries.
Training is a continuous process which becomes constructive
oversight.
Personnel Supervision. Supervision is the
third essential of employees control. Fantastic oversight will
reduce the cost of
operating your business by cutting back on
the number of employee mistakes. If mistakes are corrected
early, employees will get
more satisfaction out of their jobs
and perform much better.
Motivating Employees. Small
businesses sometimes face particular Problems in motivating
employees. In a large company, a Fantastic
employee can see
An chance to progress into management. In a small company, you
are the management. One thing you may wish to
Think about
would be to give good employees a Small share of their proceeds,
either through part-ownership or a profit-sharing
plan.
Someone who has a"share of the activity" is going to be more
Concerned about helping to make a success of the business
enterprise.
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