Checklist for Starting a Garage 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 Garage 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!
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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 Garage 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 Increase
Business Profits
Profit planning, increasing your business
profit, is simply the
development of your operating plan for the coming period. Your
plan is summarized in the form of an income statement that
serves as your sales and profit objective and your budget for
cost.
How Is It Used?
Profit planning is used in the following ways:
Evaluating
operations.
Each time you prepare an income statement, actual sales and
costs are compared with those you projected in your original
profit plan. This permits detection of areas of unsatisfactory
performance so that corrective action can be taken.
Determining the need for additional resources
such as facilities or personnel. For
example, the profit plan may show that a sharp increase in
expected sales will overload the company's billing personnel. A
decision can then be made to add additional invoicing personnel,
to retain an EDP service, or to pursue some other alternative.
Planning purchasing requirements.
The volume of expected sales may be more than the
business' usual suppliers can handle or expected sales may be
sufficient to permit taking advantage of quantity discounts. In
either case, advance knowledge of purchasing requirements will
permit taking advantage of cost savings and ensure that
purchased goods are readily available when needed.
Anticipating any additional financing needs.
With planning, the search for needed funds can begin as early as
possible. In this way, financial crises are avoided and
financing can be arranged on more favorable terms.
Advantages of Profit Planning
Profit planning offers many advantages to your
business. The modest investment in
time required to develop and implement the plan will pay liberal
dividends later. Among the benefits that your business can enjoy
from profit planning are the following:
Performance evaluation.
The profit plan provides a continuing standard against which
sales performance and cost control can quickly be evaluated.
Awareness of responsibilities.
With the profit plan, personnel are readily aware of their
responsibilities for meeting sales objectives, controlling
costs, and the like.
Cost consciousness. Since
cost excesses can quickly be identified and planned,
expenditures can be compared with budgets even before they are
incurred, cost consciousness is increased, reducing unnecessary
costs and overspending.
Disciplined approach to problem-solving.
The profit plan permits early detection of
potential problems so that their nature and extent are known.
With this information, alternate corrective actions can be more
easily and accurately evaluated.
Thinking about the future.
Too often, small businesses
neglect to plan ahead: thinking about where they are today,
where they will be next year, or the year after. As a result,
opportunities are overlooked and crises occur that could have
been avoided. Development of the profit plan requires thinking
about the future so that many problems can be avoided before
they arise.
Financial planning. The
profit plan serves as a basis for financial planning. With the
information developed from the profit plan, you can anticipate
the need for increased investment in receivables, inventory, or
facilities as well as any need for additional capital.
Confidence of lenders and investors.
A realistic profit plan, supported by a description of specific
steps proposed to achieve sales and profit objectives, will
inspire the confidence of potential lenders and investors. This
confidence will not only influence their judgment of you as a
business manager, but also the prospects of your business'
success and its worthiness for a loan or an investment.
Limitations of Profit Planning
Profit plans are based upon estimates. Inevitably, many
conditions you expected when the plan was prepared will change.
Crystal balls are often cloudy. The further down the road one
attempts to forecast, the cloudier they become. In a year, any
number of factors can change, many of them beyond the control of
the company. Customers' economic fortunes may decline,
suppliers' prices may increase, or suppliers' inability to
deliver may disrupt your plan.
The profit plan requires the support of all responsible
par?ties. Sales quotas must be agreed upon with those
responsible for meeting them. Expense budgets must be agreed
upon with the people who must live with them. Without mutual
agreement on objectives and budgets, they will quickly be
ignored and serve no useful purpose.
Finally, profit plans must be changed from time to time
to meet changing conditions. There is no point in trying to
operate a business according to a plan that is no longer
realistic because conditions have changed.
Advantages vs. Disadvantages
Despite the limitations of profit planning, the
advantages far outweigh the disadvantages. A realistic plan,
established yearly and reevaluated as changing conditions
require will provide performance guidelines that will help you
control every aspect of your business with a minimum of analysis
and digging for financial facts.
Guide Objectives
In this guide, you will learn how to do the following:
Develop a forecast for sales and gross profit,
considering all of the various internal and external factors
that are relevant to the forecast.
Develop budgets for operating expenses to quickly
detect excessive expenses so that corrective action can be taken
and purchasing commitments held within budgetary limits.
Estimate net profit so that you can determine whether
or not the projected return on your investment is satisfactory.
You will also be able to determine how much
cash will be generated from operations either for
reinvestment in the business or to compensate owners for their
investment.
As the owner of Your own company you deal
with problems in an almost daily basis. Getting familiar with
powerful Problem Solving
Techniques can dramatically alter
the growth of your small business.
Even though you Find
solutions to your problems, many people are not really skilled
in the ways of problem solving, and if
solutions neglect,
they fault themselves for misjudgment. The issue is typically
not misjudgment but rather a lack of skill.
This guide
Educates you in a few problem solving techniques. Critical to
the success of a business faced with problems is the
comprehension of what the problems are, defining them, finding
answers, and selecting the best solutions for your situations.
What is a problem. A dilemma is a situation that
presents trouble or perplexity. Issues are available in many
shapes and
dimensions. For example, it can be:
Something did Not work as it should and you don't know why or
how. Something you will need is unavailable, and something must
be
found to take its place. Workers are undermining a new
program. The market isn't buying. What do you do to survive?
Customers are
complaining. How can you manage their
complaints?
Where do Problems come from? Problems arise
from every aspect of human and mechanical functions in addition
to in nature. Some
issues we cause ourselves (e.g., a hasty
choice was made and the wrong person was selected for the task
); other problems are
caused by forces beyond our control
(e.g., a warehouse is struck by lightning and burns down).
Issues are a Natural, everyday occurrence of life, and so as
to suffer less from the anxieties and frustrations they cause,
we
must find out how to deal with them in a reasonable,
logical manner.
If we accept The simple fact that issues
will arise on a regular basis, for a variety of reasons, and by
an assortment of sources,
we could: learn how to approach
problems from an objective point of view; find out how to
anticipate some of them; and prevent a
number of them from
getting bigger problems.
To accomplish This, you need to
learn the process of problem solving. Here, we will teach you in
the fundamental procedures of
difficulty. It is a
step-by-step manual which you can easily follow and exercise.
Since you follow this manual, you will
eventually develop
some tips of your own that work in concert with the
problem-solving procedure described in this guide.
Keep
in mind, However, as you see this isn't a comprehensive analysis
of the art of problem-solving but rather a sensible,
systematic, and simplified, yet powerful, method to approach
problems considering the limited time and advice most business
owners
and managers have. In addition, some problems are so
complex that they require the additional aid of specialists in
the field, so
be ready to accept that some problems are
beyond just one person's ability, ability, and desire to
succeed.
To be able to Appropriately identify the
problem and its triggers, you must do some research. To do so,
simply list all the
previous queries in checklist form, and
maintaining the checklist handy, go about gathering as much info
as you possibly can. Keep
in mind the relative importance and
urgency of the problem, as well as your time limitations. Then
interview the people involved
with the issue, asking them the
questions on your own checklist.
When You've Gathered
the data and assessed it, you'll have a pretty clear
understanding of the issue and what the significant
causes of
the problem are. At this point, you can research the causes
further through monitoring and extra interviewing. At this
time you should summarize the problem as briefly as possible,
list all of the causes you have identified, and record all of
the
regions the problem appears to be affecting.
At
this point, You're prepared to check your comprehension of the
problem. You have already identified the issue, broken it all
down into each of its aspects, narrowed down it, done research
on it, and you are avoiding typical roadblocks. On a large pad,
write down the problem, including all of the variables, the
regions it affects, and what the effects are. For a better
visual
understanding, you might also wish to diagram the
issue showing cause and effect.
Study what you Have
written down and/or diagrammed. Call on your workers and discuss
your investigation together. Based on their
feedback, you
might choose to revise. As soon as you think you completely
comprehend the causes and effects of the issue,
summarize the
problem as succinctly and as easily as you can.
Go
through your Long list of alternatives and cross-out those who
clearly will not work. Those ideas are not wasted for they
influence on these thoughts that stay. In other words, the best
ideas you select may be revised depending on the thoughts that
would not work. Together with the rest of the solutions, use
what is called the"Force Field Analysis Technique." This is
basically
an analysis technique which breaks down the
solution into its positive effects and negative outcomes. To do
this, write each
solution you're considering on a different
piece of paper. Below the solution, draw a line vertically down
the center of the
newspaper. Label one column benefits and
one column downsides.
Now, some more Analytical thinking
comes into play. Analyzing each facet of this solution and its
influence on the issue, listing
each of the benefits and
disadvantages you can think of.
One way to help You
think about the benefits and disadvantages would be to role-play
every solution. Call in a couple of your
employees and
perform out each solution. Ask them for their responses.
Depending on what you see and on their feedback, you will
get
a clearer idea of the benefits and drawbacks of each solution
you are thinking about.
Once you Complete this procedure
for each solution, select those options that have the Many
advantages. At this point, you ought
to be considering only
two or three.
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