Tuesday, 16 August 2011

Small Business - Starting and Maintaining

What are the factors that drive the success of a small business?

Let's look at the following factors ;

  1. Start-up Capital : A strong and adequate start-up capital is essential as even a profitable business may fall down because they are short of cash to pay their employees and suppliers. But what is a strong an adequate supply of capital? You may need to do some research on your potential market and formally documenting this in a business plan. Surely you should know that a business plan is a very important document that is crucial to convincing your banker to approve your credit application. To obtain a business plan, you may prepare it yourself by amending a business plan template, or hire a professional to do it for you. Obviously, the first option would be cheaper. There's some websites that provides high quality and free business plan templates. You just need to search for them using search engines, such as Google, Yahoo or Bing. There's also a directory that you can use to easily find a business plan writer in your city.
  2. Finding Customers : This may be a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. A cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards. You can actually find websites that provides pre-designed business card templates. In addition, you may also obtain a significant saving by finding a printing service on the Internet.They are at reasonable price and offers high quality design as well. 
  3. Accounting, Budgeting and Controlling Revenue and Expenses : Your business need an accurate accounting. This is a very important thing for small business owners. It’s essential that you have timely access to information that could decide how your business is running. You need your business to run smoothly without any disturbance here and there. You need to monitor closely on your stocks. If they are running low, a quick action need to be taken to ensure your production is running smoothly. If a large proportion of your debtors haven’t paid, you need to do something about it. Quick action could save you from running out of cash to pay your employees and your suppliers. We have found a website that compares and reviews top accounting software for small businesses. The cheapest software cost around US $89.99 and the most expensive software cost US $1,499. You may find some that within your budget.
Hopefully this tip gives you an idea on how to effectively grow and maintain your small business.


Post a Comment