Some insights before launching your start-up business this year

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Administrative Fees

Before you can launch your business and start seeing profits, take some time to estimate the startup costs. Youll need to know everything that goes into starting your business before you apply for a loan to cover those costs. Since every business is unique, you will need to tailor your specific requirements to your business.

Heres are some steps to help you get started.

Step 1: Consider the Costs

What costs are there to consider? See how well these apply to your business.

• Sale Costs: Your products, your materials, the equipment you will need, shipping costs, packaging, and a place to store everything…all factor into this category. What products do you need to have on hand? What costs will it take to market your products? What budget will you need to provide to your sales team? How much will it cost to send out samples?

Sale Costs

• Professional Service Costs: Incorporating your business, copyrights, legal fees from your attorney, trademarking costs, professional consultations, getting an accountant, setting up contracts…are all included here. Which experts do you need? It will cost between $2000-6000 to set up a corporation, and then you need to budget for annual fees to your attorney and your accountant as these are typically on an ongoing basis.

Professional Service Costs

• Administrative Fees: Youll needs business insurance to cover liabilities and your property if you own or rent a workspace. You may pay required to pay rent on a facility or retail space as well, so it is essential to factor in these costs within your business plan. Be sure also to consider any deposits that will initially be required for your insurance or your workspace.

Administrative Fees

Other costs that could fall in this area include office supplies (including everyday costs and furniture) as well as parking costs, licenses, shipping costs, and utilities. In this category, list anything that you need to have access to on a daily basis to run your business. If you can get accurate estimates through research, this will help to ensure the overall accuracy of your plan of activities.

• Electronics/Technology Costs: Will you need to invest in computers, IT professionals, website development, internet costs, and security needs. Should you lease or purchase? What might cost-cutting strategies you be able to implement?

Electronics and Technology Costs

• Marketing Costs: What type of marketing will you do? Youll need advertising budgets, trade association membership costs, public relations costs and real materials (don’t forget to have business cards done). With each of your marketing efforts, consider the actual cost of the marketing plus the graphic design, copy, and printing.

Marketing Costs

• Employee Costs: If you hire employees, you will need to consider their wages, benefits, payroll taxes as well as the expenses of keeping them, such as workers compensation. Also, if you plan to use a payroll company, be sure to include these costs in your business plan.

Employee Costs

Step 2: Estimate the Startup Time

Estimate the Startup TimeThe number of time it takes you from starting the development of your business until you begin selling products should be considered. Youll need funds to cover all expenses you have during this time of no income where you will be running at a deficit for sure.

Determine how much money you need during this start-up term and set it aside. Keep in mind that under capitalization (not having enough cash) is one of the top reasons for business failure. This is why it is crucial to look at every aspect of your business financial plan before you get started.

 

Step 3: Consider Initial Sales

No one knows about your business, and therefore sales will be slow at first. As you start building a clientele, the sales will increase, but you still may not make enough to draw a profit honestly. As you consider setting up your business, find the money you will need to run your business during the first months when you arent making a significant income. While it may be hard to get an accurate figure here, do your best to get as accurate as you can base off of the costs you estimate for the first months of no income.

As you consider the amount of money, you need to have for start up, always look toward the projected income carefully. It is often best to be ultra conservative, as you can always pay down the loan if you have more money in, but if you do not have enough, you could jeopardize the entire foundation.

 

Finding the right Bank for your business and financial assets

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Set up My Account

If you want to start your business off on the right foot, it is essential to open a business bank account. There are no two ways about it; it is the just smart business. Don’t stop reading here; I am sure I can convince you.

Why Do You Need a Separate Account?

Your account is just that- personal. That is the account you buy your groceries with and pay for home repairs with. This money absolutely cannot get mixed in with your business expenses, or you will be in over your head. There are several reasons why smart business owners have a separate bank account for their enterprise.

Separate Account

Simpler & Cheaper Income Tax Preparation

If you hire an accountant, they will have to spend much more time sorting through your personal and business transactions as they prepare your taxes. If your CPA charges by the hour not having a business bank account could cost you much money.

If you ever have your taxes audited you will be required to provide accurate accounting information for every business transaction. If those operations are mixed with personal purchases, you will have a nightmare proving your case if the situation arises.

Cheaper Income Tax Preparation

Business Credibility

Another reason to create a business account is that people will take you a lot more seriously if they can make checks out to your business. If you keep asking them to just make them out to your name it can signal shady businesses practices in the eyes of some people. It will also send the message that you are not in it for the long run. Those without a business account come off as if it is a hobby.

Business Credibility

Better Money Management

It is far too easy to accidentally intertwine your purchases if you do not create two separate accounts. When that happens, you will be a lot more likely to have to choose between making a house payment or buying a new copier. Keeping these two accounts separate will make life easier and give you a better handle on where your money is going and why.

Better Money Management

Reduced Liability

Many of us formed a corporation or LLC to help protect our assets. The legal protection & tax benefits of the “corporate veil” can be removed if the government determines you are not running your enterprise as a business. One of the things that indicate you are not an actual business is commingling you are business and personal funds or treating your business money as your own. If you use the same bank account for your business and personal needs, then you are putting your business and personal assets at legal risk.

Reduced Liability

Can I Wait to Set up My Account?

Since I have convinced you (hopefully) that it is a necessity to get a business account you probably have more questions. One of the money is when is a good time to set up a business account. The answer is easy- right away!

Some people think it is fine to wait until they are more established or believe that it’s fine to wait until their business has ‘settled.’ The truth is that you should open your business account right after you have chosen a name and registered your business. This will start you off on the right foot and will mean the difference between a business and a hobby.

When you set up businesses account from the get go you will also be saving yourself much work. Think of this- if you set it up months down the road, you will eventually have to do hours of accounting to figure out how much you need to switch over, etc. That will not be much fun, especially if you are busy as a bee.

Set up My Account

I made the mistake of not setting up a business account and boy was that a mistake. I am still going through and doing a self-audit to make sure that everything is separated properly. I am also struggling to find the purchases that are eligible for a business tax deduction. How could I have saved myself hours of time? By setting up my business account right away.

What Will I Need?

You will need several things for when you set up your business account. It is important to find a good bank because they all have different rates and fees associated with business bank accounts. Believe me; you want to investigate this because business accounts are a lot more expensive than personal accounts.

Since you are a business, you will need the documents to prove it. This will include things like your articles of incorporation (if applicable), state business license, and proof of the type of business you run. There are different accounts for sole proprietors, partnerships, corporations, and non-profits. Check with your bank to make sure you will have everything you need because different requirements are depending on the type of business you have.

If you are a sole proprietor like many small business owners, you will need a fictitious name certificate if you are going to have customers make out checks to your business name (recommended). The bank will keep your name and signature on file (as well as any that of any partners you have). If you are tax exempt, you will also need to provide evidence of this.

No matter which type of business account you are opening you will need to provide your social security number and Employer Identification Number (EIN). Just be sure to call ahead so you can gather up everything you need for your particular type of business.

How Do I Find a Good Bank?

 

Find a Good Bank

Keep in mind that you should not just choose the first bank you come across. You do need to take the time to look at fees. Remember, these cost more to open than personal accounts.

Here are some things to look into before you settle on one:

• Minimum opening balance
• Minimum balance requirements
• Check writing abilities (some limit this!)
• Interest rate earned
• Internet Banking
• Merchant Account availability
• Ability to grow into a bigger account

Open Your Business Account Today!

Opening a business bank account for your small business is one of the best decisions you can make. Remember, it is just good business when you do! You will spend less time on accounting, make things easier during tax season, avoid legal issues, and look more credible in the eyes of your customers. How many more reasons do you need to open a business account today?

Entrepreneurs Money with Business Planning and Budgeting

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Vacation Time

If you have always been an employee and are finally determined to go into business for yourself, you may not be prepared for the jump into entrepreneurship if you do not plan. In fact, you may not realize just how much is involved in becoming your boss and preparing to make the huge leap from one to the other.

employee

There are some issues concerned, not the least of which is the need to be financially prepared for the transition. Here is a checklist of basic needs with which you want to be at the ready when the time comes to start your new self-employment campaign.

Business Plan and Budget

You should never embark on a business venture without a clear, precise plan and a budget. Flying by the seat of your pants may sound exciting, but it is no way to run a business. You are only setting yourself up to fail if you have no idea how much money are going to spend or in what direction you intend to take your business. Since you will either be contributing personal capital to fund your new business or hoping to receive a paycheck from your finances are tied to the planning and budgeting of your business.

Business Plan and Budget

Insurance Coverage

As an employee of a corporation, you were probably provided with health, dental, vision, and life insurance for yourself and your family. Now, as an entrepreneur, you can no longer take this provision for granted. It will be your responsibility to make sure you have coverage for your needs as well as your family’s needs. Also, if you have any partners or employees, you will need to make plans for their insurance benefits as well.

Insurance Coverage

Vacation Time

Again, as a part of a large company, benefits for employees include paid vacation time, holidays, and personal time or sick days. However, as your boss, you will find that if you do not work, you do not get paid. Part of your business plan should include company holidays and the hours you intend to keep, and you should budget ahead for times when you intend to take a vacation.

Vacation Time

Retirement Planning

Here is yet another service you have probably been provided with and taken for granted as just another employee in the service of a corporation. However, you will no longer have a company that matches your contributions to or manages an account for your future retirement. Any 401K or another retirement account you intend to have will be your sole responsibility, and again, if you have workers, you will need to provide something for them as well.

Retirement Planning

Emergency Funds

While working capital is required for you to make any progress toward building your entrepreneurial campaign, you may not realize the cost of time and effort it takes to get a new business off the ground. Also, more than 80% of all small businesses fail in the first few years. For these reasons, it is important to have emergency funding as a backup, both to care for you and your family should your business take longer than you expect to get going and in case you need to infuse your business with additional funds to get it off the ground.

Emergency Funds

Contingency Plan

If for some reason, you were to meet a roadblock to your success, you should not only have backup funding but also an emergency plan that will help you and your family survive the rough times. Perhaps you can maintain close relations with your previous employer and either take up a part time position there or continue consultation work with them to help bring in a salary until you begin to profit from your business venture.

Contingency Plan

As you can see, there’s a lot to consider when striking out on your own. Although you will likely establish a business separate from your finances, they are still closely intertwined with your small business and heavily dependent on its success. After spending years working in the role of an employee and depending on benefits offered by a corporation you must not forget to address these things as part of your self-employment plan. Make the time to research the options that are best for you, and it could help determine the success of your business.

Does idea of using internet marketing to have your own business is appealing to you?

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LAW OF PASSION

What if you could build your business with minimal risk?

With the rules below, you could build an internet marketing business that eventually replaces your work income doing something you love!

Who would not want that?

However, you see it is not that easy. To achieve the ultimate internet marketing lifestyle, there are some laws you must follow.

These laws are requirements to become a successful internet entrepreneur.

1) THE LAW OF CLARITY

LAW OF CLARITY

One of the biggest problems faced by Chicken Entrepreneurs and wannabe internet marketers is the constant bombardment of new information and new ideas.

By nature entrepreneurs are creative and have tons of ideas on a daily basis.

Chicken entrepreneurs have even more ideas due to the ease with which they can implement and test an idea online.

This, however, causes the biggest problem for the Chicken Entrepreneur.

Jumping from one idea to the next without ever staying with an idea long enough to see it succeed is a huge mistake.

As such the first and essential trait needed by all successful Chicken Entrepreneurs is CLARITY

 

This includes knowing things like;

  • What business are you in
  • What’s your market and sub-niche
  • What business model will you follow?
  • What is your reason for being in business
  • What problem are you solving
  • What are your product and service
  • Who is your ideal customer
  • What are the hopes and fears of your typical customer
  • What are your goals and targets for the business?
  • All these need to be thought out, defined and written down.

It is only by achieving a high level of clarity that will ensure you can apply Law number 2

2) THE LAW OF FOCUS

LAW OF FOCUS

Once you are clear on what your business is, Who your audience is and what your goals are from the business your next challenge on the journey to becoming a successful Chicken Entrepreneur is the ability to focus!

The best definition I have for FOCUS is below – memorize this, write it out and stick it above your computer – it will serve you well!

  • Follow One Course Until Successful
  • That is the secret! Follow one path until you succeed.
  • Don’t bounce around from one shiny object to the next looking for a quick fix.
  • There is no get rich quick scheme that works!

 

There are no turnkey or push button businesses.

  • It all takes work, dedication and focus!
  • Once you succeed in one business then, by all means, move onto the next project, knowing you have one success under your belt.
  • However, until then pick one business and stick to it until you succeed!
  • Obviously all of this ties in, as the only way you will know if you have reached is if you are clear on your goals ( CLARITY).
  • Moreover, the only way you can follow the one course is if you are clear on your business model.

However, without Law 3 both the clarity and the focus will be hard to maintain

3) THE LAW OF PASSION

As a chicken entrepreneur, you will be keeping your day job and building a business on the side.

LAW OF PASSION

  • This means you will come home after a day’s work, help out at home, spend some time with your family and then …. late at night ….sit down to work on your business.
  • It is not easy! It will take energy and discipline.
  • Moreover, the only thing that will pull you through is the passion for your business, product or service!
  • It is the passion for your business and your idea that will give you the energy to sit down at 11 pm after a hard day and write a blog post.
  • It is the passion for your idea that will have you waking up an hour earlier before work to do some research.
  • It is the passion for your market that will get you through working weekends and evenings!
  • The majority of people do not love their day job, they fell into it and are stuck there or even worse have just settled.
  • If you are starting out with your own business – make sure it is in an area you are passionate about.
  • Alternatively, I assure you-you will not be able to persist through the tough times!

Moreover, make no mistake there will be tough times.

The good thing about being a chicken entrepreneur is you already have a job that is paying you.

There is no rush to create a business and make money from day one.

Take the time to think about what you would love to do. Research it. Benefit from the flexibility of choice you have to pick the right business.

4) THE LAW OF TIME

Chicken Entrepreneurs are masters of time management. They can balance day jobs, family, their health and their business.

To succeed you too must learn to master time management.

Mastering time management is such an important skill I have dedicated an entire post just to the art of time management for the entrepreneur.

For now, re-read the above laws and start working on getting clear, focused and finding your passion.

This is the secret to achieving accelerated success on the internet.

 

Are You Sure You Want To Be A Businessperson?

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Skills

Who does not want to be their boss and earn unlimited income?

When you look at successful entrepreneurs like Henry Sy, Lucio Tan, Tony Tan Caktiong (of Jollibee), Jaime Zobel de Ayala, or Manny Villar, don’t you wish you had their financial freedom? No worries about how to pay bills, children’s education, and you can eat what you want, where you want.

Jaime Zobel de Ayala

You have probably been contemplating for a long time now about starting your own business. You are dreaming about it, reading about it, learning about it, attending seminars on different business ideas, but you never got around to starting a business of your own.

Are you worried about the statistics? Studies show that about 70% of businesses fail within the first three years. Have you set your mind to succeed no matter how long it takes?

The reality is starting a business not a walk in the park. What do you have to give (or give up) to be a successful entrepreneur?

Capital. Yes, you need money to start a business, and you need money to keep the business running. You can start with your funds or borrowed capital.

Capital

The first thing you have to ask yourself is: are you ready to face the possibility of losing most, if not all, of your capital? If not, maybe you should consider starting a business with smaller capital that you are more comfortable with. If yes, make sure that you wisely manage your cash flow from day one.

Skills. There are some skills required to be a successful entrepreneur: selling skills, people skills, leadership, communication skills, etc. Skills can be learned through experience, but it would be to your advantage if you have cooking skills, for example, if your business is a restaurant.

Skills

You do not have to have all these skills before starting a business but make sure to learn these valuable skills as your business grows.

Right Attitude. The top characteristics that make a successful entrepreneur are mostly about having the right attitude towards life and work. When the going gets unfortunate, it is the terrible ones that get going.

Right Attitude

Being an entrepreneur, you will inevitably encounter stumbling blocks, trials along the way that will put you to the test. Only those armed with the right attitude will experience the most sought-after financial freedom.

Aside from the capital, skills, and the right attitude, an entrepreneur also has to be willing to face other risks in the business like calamities, competition, etc.

So, are you sure you want to be an entrepreneur after knowing all these? If so, I salute you, and I welcome you to the breathtaking world of entrepreneurship!

 

How To Train Your Brain To Go Positive Instead Of Negative

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successful businessman

Have you ever wondered what is the main difference between Bill Gates and you, besides the USD 50 billion? It shows that you are where you are today because you chose to be there for better or worse. It was your decision and no one else.

Bill Gates

Not even your circumstances. The thoughts you had led to the decisions you made up to today determined your life right now.

I have heard this so many times, I challenged and argued with it for some time. Guess what? Unless you can finally “get it,” you can achieve the success you are looking for by leaps and bounds.

Why? Because you are what you think. Thoughts are real; They are so real and so powerful. In fact, you use your brain to determine how wealthy you can be.

How we live, and whatever we do, can have a profound impact on the physical structure of our brains. If we are what we eat, as the saying goes, we also are what we think. Alternatively, rather how we think and as well as how much we think.

The neat part about this truth is that you are 100% in control of your thoughts. In fact, your thoughts are the only thing in this world you have 100% control over. We may have difficulties in controlling our thoughts at challenging times. That is because we are not “perfect” in our skills in controlling our thoughts.

The biggest factor that will determine if you are successful in your action is whether or not you build to create a mindset that encourages and you to take the everyday actions and disciplines required for success.

successful businessman

Only you can decide if or not you want to train your mind to think like a successful entrepreneur, and hence, become a successful businessman. Your self-talk determines everything. You can talk yourself into success just as easily as you can talk yourself out of it.

The lucky person simply does the things the unfortunate person makes a conscious decision not to do. Sound familiar? If you are not careful, your mind comes up with logical reasons or excuses to justify them. So ask yourself honestly. Are those truly “real” reasons, or are they just excuses?

Life gets in the way “or some such “motto,” but the fact is YOU get in your way.

We tend to excuse ourselves for not following through on what we know we should be doing to succeed. Moreover, one reason leads to another and the “rut” in our life continues.

There is a saying; he who has consistent thoughts about having abundance will be addressed more logical thoughts about having abundance. He does not have rational thoughts about wealth will even have the thoughts of abundance taken away from him.

Why? Consistent thoughts produce a particular pattern of thinking. Patterns of thinking create beliefs, attitudes, and values. Beliefs, attitudes, and values create actions. Actions produce results.
So if you do not have what you want, it is likely your current state of thought is incompatible with your goals.

So how do you become the person you need to be to create wealth and abundance in your life? First and foremost, you must train your mind to think differently if you want different results. Not 100% change at once but begin with 1% change and that small change can make a different to your life.

Here are some other suggestions:

1. Introduce others to your world on a daily basis who already have what you want. It is said that you are the total of the five people you spend most of your time with.

2. What are Tv shows do you watch when you get home? Are they up uplifting and educational?

3. What do you listen to? Self-improvement and business coaching?

4. Do you read books? If so, are they design to educate and empower you?

5. Surround yourself with the presence of successful entrepreneur and network marketer each day in the form of books, audio training, etc.

When you finally accept that you have greatness within you, the truth will empower you to condition your mind free from any excuses and justifications that are holding you back from your ultimate potential. Most millionaires are not born. They are self-made most of the time.