Tips for Writing a Business Plan
Filed Under: 101
Tags: Business Tips, Entrepreneur
If you are getting ready to start a business, the process of writing a business plan will help you clarify your vision. The final product, too, will help you represent your business to potential advisors, investors, clients, and vendors. Below, I have compiled some resources to get you started.
First, you want a mental map of what a basic business plan includes. Check out www.myownbusiness.org/s2, a website that provides outlines of the business plan and some business plan writing tips. If you decide you want to purchase a few books on the topic, check out http://www.planigent.com/html/books.html, which includes helpful, thorough reviews of some of the more popular how-to-write-a-business-plan guides.
Generally, business plans are at least three sections: one on the business itself, the second on financial data and projections, and finally, a section that includes documents that support the prior two sections. Typically, you will also include a one-page version of your business plan, known as an executive summary or a plan summary. Many advise that you write the summary last. This one-page document includes everything that is in the business plan, but in a succinct version that communicates who you are, what you want to do, how much money you will need, and how much money you project that you can make.
You do have some creative license in designing your business plan. If you decide to maintain the three-section model, the content within each section and the order of that content can vary. In other words, there is not one right structure for a given business plan, but several possible structures. Many books include examples of business plans. You can also go to http://www.bplans.com/sample_business_plans.cfm for a wide range of good-looking business plan models by industry. You may find it most effective to combine several models, to create a structure tailored for your unique business and purposes.
Finally, depending on your strengths and skill set, you may want to seek additional resources to simplify the process and help you make more informed decisions. Specifically, you may decide to look into business plan software programs or professional consultants. Software programs can range from $20 – $150. They are designed to walk you through the writing process and to create a professional-looking finished document. For reviews of business plan software, visit http://www.diybizplan.com/software. As for consultants, don’t be afraid to consult a professional writer and editor, or an accountant. The quality of the finished business plan, like a resume, should be flawless, especially if you plan to share it with outside parties. Equally as important are the numbers, specifically the projections for the first year. If accounting is not your area of expertise, it is may be helpful to find someone you trust to consult.
Ultimately, you and only you can make the creative and intellectual decisions that hold the best business plan results for you. Although the thought of writing a business plan can be daunting, the good news is that there will be no one right answer, but several.
Delaware is Ranked Best Legal Climate in the United States
The U.S Chamber’s Institute for Legal Reform just released its survey results for this year and Delaware is ranked #1 for the seventh year in a row as the state with the best legal climate! This is important because your business will benefit if you are incorporated in Delaware; the state is ranked #1 for the impartiality and competence of its judges and the fairness of its juries. Below is an excerpt:
The U.S. Chamber’s Institute for Legal Reform (ILR) today released its survey ranking the states with the best and worst legal climates in the country. According to the survey, the states with the worst legal climates are California (46th), Alabama (47th), Mississippi (48th), Louisiana (49th), and West Virginia (50th). The states with the best legal climates are Delaware (1st), North Dakota (2nd), Nebraska (3rd), Indiana (4th), and Iowa (5th).
The survey also shows that a state’s legal climate affects how and where a company does business and creates jobs. Two-thirds, or 67%, of the 1,482 corporate lawyers and executives contacted say a state’s lawsuit environment is likely to impact important business decisions at their company, such as where to locate or expand their businesses. That is up 10% from just three years ago.
Check out the detailed results HERE.
100 Best Small Business Podcasts of 2010
Filed Under: Podcasts of Interest
Tags: Podcasts of Interest, Small Business
SmallBusinessTrends.com has done it again with a great list of the 100 Best Small Business Podcasts of 2010. They did a fantastic job sifting through what’s out there and have even categorized them by topic! Check it out HERE and happy listening!
Topics covered include:
The topics covered include:
- Leadership and Management
- Marketing and Sales
- Operating a Small Business
- Tax and Finance
- Startups and Starting a Business
- Home Based Business
- Small Business Technology
- Business Opportunities and Franchises
- “All Around” Small Business Podcasts
- Business News and The Big Picture
How to Create an App for Your Business
Filed Under: Articles of Interest
Tags: Articles of Interest, Marketing, Media
I recently got an iPhone and am addicted to checking out the app store for the latest and greatest. I have been thinking a lot about how businesses go about creating an iPhone app for their business. Check out this great article on DesignSponge with a clear explanation of the process. Below is an excerpt:
First things first—come up with a solid idea.
It’s probably best to do a bit of research to find out what Apple will and will not allow in the App Store. Then do some keyword searching—with 150,000+ apps out there, chances are someone else already had your great idea. That being said, if there’s a chance for improvement it could be worth a try.
When we created the Virtual Zippo Lighter App at Moderati, we had the idea long before the iPhone even existed. We did a “rock lighter” wallpaper years prior, and had been in the works with licensing images from Zippo. When we were pitching the app idea to Zippo a couple other lighter apps had just launched. My boss said to me, the thing that’s going to make this one the best is the design. The strategic licensing effort on the part of the marketing department also certainly had something to do with the success of the app.
Okay, so you have a great idea, then what?
Just like any other multi-media design project, you’re going to want to start by making a list of features your app will have. Chances are your list might get a bit long, so remember that “less is more” can be applied to new design mediums. Group features into clusters that make sense, and remove things that don’t really enhance the user experience or add to the final product (just because the iPhone can do something, doesn’t mean your app has to).
With your features listed, next you’ll want to mock up your product and do a bit of UI design.
Taking all the features into consideration, you’ll have to figure out an elegant way for users to actually use the app. Either by sketching on paper or creating simple shapes on the computer, think about how it will function, what users will see first, and what users will click on most. Remember that people are impatient, so it’s best to minimize the number of clicks. When thinking about elements on a page, and the order of things, keep in mind that instinct and learned behavior play a part for the user (for example, “forward” is usually on the right, and “back” is usually on the left).
Then, it’s page-flow time. When setting up your design and how everything will be connected, instead of thinking of it as a website (open-ended, scrollable, kind of limit-less), think of it more like a DVD menu interface (limited set of features that get straight to the point). Unlike a website, your app isn’t going to have breadcrumbs or a URL at the top helping you find your way back, so be sure the user can figure out where they are at all times, with shortcuts to important features. Adding a “Home” button is much, much better than forcing the user to click “back” a good number of times (if it were me, at that point I’d just choose to hit “End”).
Read the full article HERE.
Sole Proprietorship or S-Corporation?
Filed Under: Articles of Interest, S-Corporation
Tags: S-Corporation, Sole Proprietor, Taxes
At Harvard Business Services we know that when you start your own business it can be confusing to know what corporate structure is the best decision for you and your business. I just read a great article from Entrepreneur.com that does a fantastic job clarifying some of the confusion regarding a Sole Proprietorship and the benefits of the S-Corporation. Below is an excerpt:
Though there are tax benefits to being a sole proprietor (no employees = no payroll tax–huzzah!), you are personally liable if a legal situation arises. This is especially important for those providing services like construction and financial consulting.
“If you are dealing with individuals’ money that is typically invested in the stock market, this tends to be a very sensitive [and potentially litigious] issue,” says Robert Fuest, principal of LandorFuest Capital Management. “You must understand all of your risks.”
Those risks go beyond just upsetting a client. For instance, a default on a debt or other payment can result in a creditor legally coming after your personal property and assets or other possessions.
Fuest advises new business owners to look at their entire financial situation and take into account any plans to grow and include partners and employees. “The LLC offers more flexibility when it comes to operating and more personal protection,” says Fuest.
Once your sole proprietorship is up and running, Fischer recommends treating your business like a business, something that those who freelance from a home office would do well to remember. “Be professional at all times and make time for things like marketing and networking.”
This includes everything from having professional-looking materials (business cards, letterhead, invoices, etc.), to answering the phone properly and dressing appropriately. Deshayes says this can go a long way toward impressing clients and making them comfortable giving you work.
When purchasing these materials, Deshayes says it’s important to keep personal money and business funds separate. “Keep your books clean and avoid comingling funds, which could open you up to legal liability.”
Though there is no mandatory income threshold, Estill uses a guideline of around $50,000 per year gross as a starting point to consider converting a sole proprietorship to an S corporation (assuming they are not at risk for liabilities–then, forming an LLC would make more sense).
Estill says the primary tax benefit of an S corporation is that the owner controls the payment of employment taxes (via a declaration of salaries or wages). In a sole proprietorship, all net profits are taxed at the self-employment rate, which is currently 15.3 percent on the first $106,800 of net business income.
That rate remains the same for either structure, but the business owner can save some money with the S corporation. They may draw a salary (let’s say half of what they’d declare as net income on a sole proprietorship) and pay the 15.3 percent on that. “The rest of the income flows to your personal tax return on a Schedule K-1, which ends up being subject only to income taxes,” observes Deshayes.
There are costs associated with setting up an S corporation, including filing fees and corporate taxes, but Estill says, “The S corporation can be set up in any of the 50 states with only one shareholder, so it is an ideal business entity for a single-person venture.”
Fuest advises looking before you leap, no matter what the structure. “The laws always change, and depending on the size of the business, you could be at an advantage one year and a disadvantage the next. It really comes down to your personal plans for growth.”
Read the full article HERE.
