Having a big ego may sometimes be considered a negative thing but I think having an ego is very important when it comes to creating a successful business. I am not saying that you can’t run a successful business without one, I just think it is a huge asset.

I want you to know that I do think there is a difference between having a big ego and being arrogant. I hate being around people who are arrogant and think they are better than everyone else. I especially hate it when those people like to tell you why they are so awesome and why you should think so too. But is it okay for us to think we are better than someone else at something? I think it is, you just don’t need to go telling everyone you are better.

Since having a big ego can be perceived as a negative personality trait, another way to think about a big ego is to think of it as having a large amount of confidence. When we think of someone having confidence it is usually something we admire about that person. Having confidence is something that shows outwardly but we don’t have to go telling everyone how great we are.

Why you need a big ego.

Having an ego means that you think pretty highly of yourself. If you are going to be successful in any business it is important that you believe that you are one of the best at what you do. You must also believe that you are going to be successful because you are just that good.  It is okay to think highly of yourself and believe you are the best at something.

When you truly believe something almost anything is possible. When you begin to doubt the potential for success then there is a good chance things will not work out the way you had hoped. Stop doubting and identify why you are going to be successful.

Be careful.

If you decide to start building up your ego it is very important that you don’t get carried away. I hope that you can acquire a big ego but I ask that you don’t become an arrogant bastard. Becoming arrogant and completely in love with yourself will make a lot of people not like you and can also make running your business harder.

So you want to start building your ego?

Building up your ego is really about listening to others and changing your mindset. When others say you are good at something, believe them and remember it. Usually people only say something positive about you if they truly believe what they are saying. If they don’t think you are good at something they will usually not say anything at all.

You should also focus on being optimistic. Work on intentionally changing you mindset to where your have a positive outlook on things. Optimism is one the driving forces of a successful entrepreneur and pessimism is one of their downfalls.

Below are some ways you can start to build up your ego:

• Recognize what you are good at. We are all good at something. Write down everything you are good at, even if it doesn’t have to do with pursuing your own business. If you are good at soccer write it down. Anything you are good at is something to be proud of and will help to build your ego.
• Remember compliments you have received. Any time someone compliments you believe them and if it helps write it down when you get a chance. Remembering compliments you have received can easily give you an ego boost if you are in need of one.
• Find ways to measure your success. I am addicted to measuring and tracking everything I do whether it is my running workouts or the number of visits to my blog. I guess you could say I am a spreadsheet junky. What is great about measuring your success in different areas is that you can see how far you have come. If I started off only running one mile at a time and now can run 10 miles, that is something to feel proud of.

There are a number of other ways to build your ego but remember that a big ego means that you feel confident in yourself and does not mean that you have to go around telling everyone about how great you are. When you believe you are great others will too without being told.

Is having a big ego necessarily a bad thing or do we just need to change the way we think of our ego? Let me know your thoughts and if you think increasing your ego could potentially increase your success or if you disagree with this idea.

Photo credit: ntr23

Last week I wrote about how I started working a day job separate from my businesses. The reason for doing this is so that I can meet my highest priority goal which is to pay off all of my debt. This new job only lasts for five months and I will be able to put all the income I make from it towards debt. I am really looking forward to the feeling of freedom I will have once I don’t owe anyone anything.

I do spend some time in an office working but I also spend a lot of time on the road traveling. I really enjoy that I get to travel all over the country and get to frequently escape the cubicle.

As of today I have now had this job for two weeks and have started to get used to having a lot on my plate. Even though I am used to it doesn’t mean that it is easy. I have a lot to accomplish and as a result feel increased pressure and stress in my life.

While running a business and having a day job can be very hard at times, I feel that it gives me an opportunity to learn how to manage my time efficiently and help others who are wanting to start their own business while working a job do the same. Time management will be key if I am to continue to meet my business goals and not delay them until after my day job has ended.

Planning.

To meet my business goals I must first write down everything I want to accomplish for the week. I usually plan several weeks in advance. This process will not take up very much time and many times I will only have 2 or 3 main things I am trying to accomplish for a given week.

Once I know my weekly goals, I will break down what daily tasks I need to complete for the week to meet those goals. I usually try to only schedule tasks on Monday through Friday unless I know I will need additional time to meet a goal. By relaxing on the weekends I stay less stressed and have a better quality of life. I don’t want to risk burning out.

During the week days when I know I have to come home and work on my businesses I have found that starting to work immediately after getting home seems to be the best strategy. It is very tempting to want to relax for a while first but I have found that if I relax I begin to put my work off later and later and sometimes decide I will just do it the next day.

When I begin working as soon as I get home I am still in work mode and not relax mode so I find myself getting things done a lot faster and have plenty of time afterwards to relax and be lazy.

Procrastination.

Sometimes it is hard to get to work immediately, maybe after a tiring day, and some days I can’t even motivate myself to work at all. I think this is okay every now and then but it is important not to make a habit of it. The more I procrastinate the more work I have to do on the weekends or the more I push back meeting my goals.

I have found it particularly hard to work when I am traveling. Sometimes all I want to do is go to my hotel room and lay on the bed and watch TV.

Working on the weekends is something I am used to doing, but I want to keep that work to a minimum if at all possible. If I put off tasks until the weekend and find myself working more than enjoying my relax and play time I will quickly begin to burnout. Once you feel burnt out it is hard to recover quickly so it is best to avoid it at all costs.

Having days of rest is extremely important so that you can enjoy life instead of adding unnecessary stress that will only make your life harder. Remember why you are starting your own business and make sure your reasons to do so aren’t forgotten during the process.

Creating a plan for you business and work schedule will help you reach your goals a lot faster while also keeping your stress level in check. Meeting your goals is very important but remember that maintaining your quality of life is the most important.

What strategies have you found helpful for getting things done while maintaining quality of life?

Photo credit: Cliph

I had the pleasure of sitting down with Todd Knowlton, president and co-founder of Smooth Fusion Inc., to discuss his journey to becoming an entrepreneur, things to consider when starting a business, and things to consider when running an existing one.

Todd has been starting and running businesses for a while now. Before he was a business man he was a best-selling author of a number of textbooks. Opportunities arose from his success as an author and he established a company called Knowlton and Associates that became a premiere web development company for companies such as Microsoft Inc. Knowlton and Associates began after Microsoft asked Todd to make a website for them. One website became many more and his company grew to have a team of almost 10 people.

He later became the Managing Director at Full Moon Interactive and then went on to create Smooth Fusion Inc. with two of his colleagues Brad Hunt and Jay Bates.

During our discussion Todd talks about how starting a business wasn’t the scary part of entrepreneurship for him but it was when he decided to start hiring others. There is a great sense of responsibility that becomes yours once you are worrying not only about your financial well being but others as well. When hiring even just one person it is important to consider whether or not your business is profitable enough to pay someone’s salary and benefits (if you are offering benefits).

Todd also stresses the importance of surrounding yourself with people you trust that will give you valuable feedback on business ideas you are considering to pursue. It is very easy to get caught up on your own idea and not see that it may actually be a bad idea. Feedback from others can be very valuable especially if you want your business to be a success the first time.

Well I won’t give anymore away. Check out the video to hear what all Todd had to share. Also let me know your thoughts in the comments on what was discussed. If you have any specific questions regarding starting or running a business that you would like me to ask future entrepreneurs I interview, let me know those as well.

Here are 5 tips that will help your business grow faster and build momentum.

1. Create a Brand.

Creating a brand for you business is one of the most important decisions you will make during the life of your business. Your brand is what people will identify you by. If you don’t have one no one will remember you and if you have a poorly executed brand no one will want to do business with you.

Having a logo is usually what we think of when we hear the word brand but your brand is actually so much more than that. Your logo is the visual part of your brand, other parts of your brand may include what makes you different from other companies in your industry, how you run your company, or how you advertise your company (goofy videos).

However you decided to create your brand just remember that you want it to be memorable and keep people coming back.

2. Get Online.

Having a presence online is essential when starting a business. Even if you don’t have an online business it is a way for you to reach out to potential customers. It will allow customers to easily find you and learn more about what you do.

The first step to building your presence online is to get a website. If you think you don’t have the money to get a website, think again. There are a number of websites that will allow you to create a free website until you have the money to make something better. A lot of the free website services even allow you to purchase a domain name for around $10 so no one will know you are using a free website service.

Free website services:

• Weebly.com
• SnapPages.com
• Wordpress.com

I also would strongly suggest getting a Facebook and Twitter account for your business. You may believe this will not be beneficial for your business but you must know that most of your customers are on one or both of these networks and this is one more free way you can reach out to them.

3. Make your first sale.

When you first start your business making that first sale can sometimes be very intimidating. It can also sometimes be the hardest sale you make because you aren’t exactly sure where to start. Start with people you know. Let all your friends and family know what you are doing and if it makes sense offer them a discount if they do business with you. Making that first sale, even if it is to a friend or family member, will jump start your business and motivate you to keep going.

4. Testimonials.

It is very important to start building credibility for your business from day one. Getting testimonials from your first sales will help you build your credibility and encourage more sales down the road. Don’t be afraid to ask a customer or client what they thought of your product or service. Most people love to tell you what they think and asking them to come up with at least one or two sentences shouldn’t be too much to ask.

5. Create buzz.

Creating buzz about your business can be very fun. Think of creative ways to do something that will get people talking. You may think about holding some kind of contest or doing a crazy video. Whatever it is you decide to do you will need to get the word out about it. A great way to do this is to contact the local newspaper or TV news station and tell them what you are doing. Reporters are always looking for something interesting to talk about so if you can drop something in their lap there is a good chance they will spread the word.

I know there are many more tips out there to accelerate your business. If you have any others let me know in the comments.

Photo credit: Sekaino Ai

When I first started running again after about a 8 month hiatus it was very hard. When I quit running I could easily run 10 miles and now I could barely run 2. It is very frustrating when you start doing something you used to do and it turns out to be a lot harder than you remember. I would go out for a run and my side would start cramping and all I would want to do is walk. After pushing through all the pain I would notice distance wasn’t my only problem, my time was terrible as well. I longed to be where I was before when running was easy for me.

I don’t think I was really that surprised when I couldn’t run as far or as fast. I didn’t expect to be running 10 miles as easy as I could before and I knew that if I wanted to increase my mileage and speed the best thing for me to do was to keep running. I knew that I had to create a running plan for myself and decide what days of the week I was going to run and for how long. After making the plan I knew that I had to commit to it and not flake out no matter what. I am happy to say that since starting my 3 day a week schedule I have not missed a single run.

It is great to see how my consistency has paid off and I am now faster and can run farther than 2 miles. I am setting new goals every couple of weeks and meeting them every time.

When you start off in any sport the only way you are going to get better is if you keep doing it over and over by establishing consistency. Practicing only when you feel like it will never get you where you want to be. You must make a plan and decide what days you are going to practice and not miss a single day. Establishing consistency is the only way you will improve.

Once you have established consistency you will start to see yourself get closer to your goals. With my running I started getting faster and started increasing my mileage. If you stay consistent you begin to build momentum and it starts getting easier and easier to improve. Adding one more mile to your run doesn’t seem as difficult as it would have when you were first starting out.

Consistency When Starting A Business

This same principle can be applied to starting a business. In the beginning it is hard and there are so many things to figure out. Even after you have the business setup and ready to go you still have to get people to purchase your product or service. Finding customers can be very hard in the beginning. You must create a plan and consistently follow it. It is very easy to get discouraged in the beginning. You must realize that starting a business is not going to be easy at first but if you consistently work at it things will get easier.

And if you stay consistent, once again, you will build momentum. Having momentum in your business is the best thing that can happen for you. It doesn’t mean you can stop working as hard. It just means that all your hard work is finally paying off. Before it seemed like you were never going to get your first customer, now you have customers coming to you with out you even looking for them.

When I first started Design Shaman, which is a company that does web design and branding, I had no idea who we were going to make websites for. I knew that we were really good at what we did but no one else knew that. And who could pay us what we were worth? Most of the people I knew who were starting businesses didn’t have a budget for a website.

My partner and I worked very hard building our brand and our website. We made sure to create a website that would really show our creativity and talent. Now all we had to do was find someone to hire us. So what did we do? We started talking about it. We started telling everyone we knew that we had just started a new web design company and would give them our business card or send them a link in an email. We created a Facebook page and a Twitter account and began talking about what we do on the web.

For several weeks we talked about our new business to a lot of people but still no business. So what did we do next? We kept talking about it. We knew that if we were ever going to get any clients everyone we met needed to know what we do. So we consistently talked about it every chance we got. And before long we started getting clients. It was only a few at first but over time we started having people come to us that were referred by someone we knew. The number of referrals just kept coming in and are still coming in. We had finally built up our momentum.

So let me say it one more time, establish consistency so that you can build momentum.

Steps to building momentum:

Set goals.

You must create realistic short term goals for your business. The reason I say “realistic” goals is because you want to meet these goals so you will be motivated to carry on. It is important to always have goals throughout the life of your business. As soon as you stop working towards something your momentum begins to slow and all that hard work will be lost.

Create a plan.

Once you have your goals set you need to come up with a plan to meet your goals. That plan needs to include consistently working towards your goals. If you want to sell 10 products by the end of the month the best way to meet that goal is to consistently try to find buyers for that product. If you stop trying, unless you are lucky, you will not sell the 10 products. Without a plan and consistency your business will never be the best it can be. Having a product or service to sell doesn’t mean everyone is going to come buy it. You must consistently pursue them and before long people will start pursuing you.

Setting goals is the easy part when starting a business, and sometimes the fun part, but consistency can be difficult. Getting tired and discouraged will usually come fairly quickly but you must push through those symptoms and keep moving forward. Because when you keep moving forward “gravity” takes over and you gain momentum.

Let me know some of your goals in the comments and how you plan to meet them and begin building momentum.

I spend more than a couple of nights a week laying in bed at 3am wishing I could just fall asleep. Sometimes I will lay in bed for 3 or 4 hours extremely sleepy but unable to turn my mind off. Usually what consumes my mind at night is not what I am going to do the next day but how this new business idea I had will work. I start working all the angles in my head by trying to answer who will buy it, how will I market it, and how soon can I start.

While I am thinking of all these “amazing” business ideas, in the back of my mind all I can think about is that I should be asleep by now and that I am going to be so tired the next day. When I finally do fall asleep and the next day arrives I revisit my ideas and find myself having trouble remembering all the thoughts I had the night before. Since I don’t remember enough to continue thinking about it I usually just go on with my day.

The reason I tell you this story is to emphasize the importance of making time during the day to think out your ideas. If you don’t set aside time during your day to intentionally brainstorm you run the risk of forgetting the ideas you are thinking about when driving in traffic, working at your job, or trying to fall asleep.

During this set aside time it is important to come up with a system you will follow when brainstorming business ideas and make sure to write everything down so you will remember it later.

For the One Hundred Dollar Business I have come up with a system that I am going to follow to try to increase the efficiency of my brainstorming time.

The Idea Factory

All of my ideas will go into one of two categories. These categories will help me to stay focused during my brainstorming time instead of day dreaming about things that will not make a profit.

Those categories are:

• find a need and create a solution
• build off something that has already been proven to work

For the first category, finding a need and create a solution, I am trying to think of things that could make someone’s life easier. This is a very fun category because it allows you to be extremely creative in your ideas. When brainstorming within this category it is important to keep an open mind. Don’t decide something won’t work yet. If you have an idea you are not sure about, write it down anyways. Being realistic can come later. It is important to just keep the ideas coming.

The second category, build off of something that has already been proven to work, involves taking existing business ideas and reworking them or replicating them. There is nothing wrong with starting a business that others are already doing. The benefit to looking at existing businesses is that you can analyze their successes and failures over the years and begin with a strategy that has already been proven to work. Obviously I don’t want to do this with just any business. I need to consider whether or not there will be room in the market for me. And even if there is, does the market have enough success for it to be worth while to get into.

Like I mentioned earlier, I want to let my creative ideas flow without limitation. While I will make sure to do this it is still important for me remember that there will be some realistic limitations. I won’t have the money or time necessary for just any business. Once you have allowed yourself to creatively think without any limitations you need to revisit your ideas and decide whether or not pursuing them makes sense for your situation.

Here are some things I will consider after looking over my ideas:

• physical merchandise may be too costly to pursue
• a time consuming service business may require more time than I have
• a brick and mortar business will most likely be out of the question

Having physical merchandise to sell can quickly become costly. While there is the option to dropship merchandise, buying in bulk and trying to sell will probably not be the route I will take.

When I say time consuming service I am referring to a business that requires you to be somewhere for a period of time before you get paid. An example of this may be cleaning houses or offices. I will only get paid if I am cleaning a house and if I only have 2 hours of free time a day to work on my business I will not make much money.

I think the reasons for not opening a brick and mortar business are pretty obvious. Too much money.

I am going to try to spend a lot of my time thinking of business ideas that will make money even when I am not working. This could also mean businesses that can make a large profit with very little time investment after the initial up front work load. Another name for this type of business is a passive income business. A business that makes money as you watch tv, go for a run, or even sleep.

It is important to have a plan on how you are going to spend your creative thinking time. Below are a few ways I am going to keep my creative ideas coming.

• spend at least 1 hour a day brainstorming and thinking of ideas
• pick up business magazines at the library to flip through for business ideas (You know these are FREE!)
• browse the web for ideas as well (During this time close your email and Facebook. These will distract you.)

There are a number of ways to get your brain thinking creatively. Change up how you spend your time brainstorming to always keep it fresh. This will help you to continue to have new ideas.

Let me know in the comments what strategies you have used to brainstorm ideas. Also soon I will start posting some of the ideas I am having for you to see and give me feedback on or use for yourself.

Seize this very minute; what you can do, or dream you can, begin it; Boldness has genius, power and magic in it. – Johann Wolfgang von Goethe

When I was a kid, probably around 9 or 10, my friends and I would setup tents all over the house using huge sheets from my parents bed. They usually were somehow secured to the ceiling fan or light fixture and then tied off to different objects in the room. We didn’t just use one large king size sheet, we would always grab a handful from the linen cabinet and make the tent as big as possible. Some of our tents even had multiple rooms.

What we did in the tent once it was built usually involved imagining it was our secret hideout that no one else knew about. And only letting people in that had special clearance. This usually did not include my sister. Sorry Catherine.

I remember one tent that I made very clearly. This tent I made by myself with a single purpose, to make money. I set up a huge tent that covered my whole bedroom. I collected all the stuff I owned that I no longer wanted and I put price tags on them with little stickers I found from my mom’s desk drawer. I remember specifically having Nintendo games for sale. Not sure if that is relevant to the story but that is the only thing I remember selling. I then proceeded to call all my friends in the neighborhood to come over and see my little store. I made sure to remind them to bring some money if they wanted to buy something.

I don’t think I became rich that day (well I know for a fact I didn’t become rich that day), but my little store was a success and I did make a little money. Who would have thought 10 year old kids would have the money to buy stuff from me. It is hard to know if something will work unless you try it.

When you have the desire to start your own business, having ideas is the easy part. I talk to people all the time that say they have this great business idea. I can tell they are passionate about their idea too. They talk about it with such excitement. And a lot of the time they have most of the details thought out already. The problem is there is always something that is preventing them for moving forward with their idea. It could be fear, it could be money, or any number of things.

I think fear is probably the most common reason and can easily include money and time. Someone may be worried that they don’t have enough money to start a business. Or worried that it may end up being a flop and they will have wasted time and money pursuing it.

We all have to come to a point where we realize that if we don’t face our fears and give our desires to own a business a chance, we may never live the lives we want.

Eliminate as much risk and then go for it!

If I had not followed through with my idea to sell my stuff in the tent that day, I would have never known that I could actually get neighborhood kids to buy my stuff. It is important though to listen to your fears. If you start something with out thinking about all the details you run the risk of having problems down the road. Analyze your risk and eliminate as much as you can. Then take that first step and start your new business.

You have to take action if you want to be successful in business. You can have 100 good ideas but ideas won’t get you anywhere with out taking action on those ideas first.

Let me know in the comments what is preventing you from moving forward with your ideas. Also if you have a story of when you pursued an idea and it was a success let us know about it in the comments.

Photo credit: pink.polka

I have started several businesses in the past. Starting businesses is what I enjoy doing. When I first got the entrepreneurial bug I didn’t have much money so the businesses I would start had very low start-up costs. Even to this day most of the businesses I have started cost me less than $1000.

So why am I telling you this?

I have decided to start a $100 business to demonstrate how anyone can start a business if they take the right steps. I also want to help others find a strategy that works.

I have talked to many people that say they wish they could work for themselves but they just don’t have the money to start a business. They say that the risk is too high for them. Obviously some businesses are going to have a lot of up front costs involved and will most likely require a loan or investors. But there is a huge opportunity for low cost businesses. How do I know? Because I have taken advantage of that opportunity many times.

The idea of starting a business with very little money is know as bootstrapping. Bootstrapping is not a new idea. It is something people have been doing for a long time. With a little money, or sometimes no money, you could be on your way to working for yourself.

The reason I am starting a $100 business is to discover a rough formula that will work for others wanting to bootstrap a business. I plan to keep everyone following this project up to date on my progress via articles and video. I don’t pretend to know everything about business so you will see me learning as well.

The Plan.

Start with $100. I will start with only $100 and can spend no more than that. The only way I can spend more money is if I make a profit from my business. Then I can use the profit I make to put back into the business.

$1000 in 3 months. My goal is to make $1000 in 3 months time. Any amount of profit would be a success but I feel that this is a good number to shoot for.

3 Months. The total duration of the project will be 3 months unless I decide to start another business to continue the project. I will spend the first month brainstorming business ideas and coming up with strategies to make the business a success. The following 2 months I will spend marketing my business and hopefully making a profit.

I am literally starting this business from scratch. I currently do not have any ideas, lists, or strategies written down. It is also important to note that I will also still be running my other businesses. So time will also be an issue and could possibly simulate someone who has to keep a job while they are trying to start a business.

I welcome any suggestions as far as ideas or strategies. I know you are probably thinking, “Why would I give him my good idea?” Well you don’t have to. But if you do and it works then all the more reason for you to give it a try as well.

It is also important that I mention that the money I make from this business will not go into my pocket and pay my bills. I will donate any profit that is left over after the 3 months to a non-profit organization. Which one? Well I want you to help me decide. Leave a comment telling me who I should give the money to and why.

What else do I expect from you, my readers, however few there may be?

I will need as much feedback and as many suggestions as possible. Two minds are better than one. I hope that this project is a success and that it motivates others to bootstrap a business as well.

Leave a comment below and let me know your thoughts or if you have bootstrapped a business before tell me about it.

Photo credit: Stephen Poff

It is very important to have direction and goals with any project or new business venture. In the past I have found myself launching a great new business idea with no written plan or solid goals. I quickly discovered that while sometimes this approach works out fine, more often than not it either slows the process of success or eliminates it completely.

It is a well-known idea that when you write your goals down your chance for success increases dramatically. I have experienced this time and time again in my own life. Whether it was fitness goals or business goals I realized my success rate was much higher than previous attempts when I developed a plan to meet my objectives. Creating a business plan falls in line with this idea and offers a new business a greater chance of success.

Another reason for having a written plan for your business is to keep you focused on each task at hand. It is easy to get caught up giving all of your time to only one aspect of your business and forgetting about the other components involved. One example of this may be that you spend all of your time perfecting your online presence (website, social networking interaction, etc.) and forget that you need to be pursuing new clients by networking face to face. A business plan offers a map to follow in pursuit of your new venture that helps to keep you moving forward.

The business planning process can seem overwhelming at first. When I first decided to create a business plan I did a huge amount of research and it got very discouraging very fast. I felt even more discouraged when I looked at example business plans and found they were lengthy, detailed and wordy.

There are a few simple things to keep in mind that can make the process seem more manageable. For example, try to avoid over planning or getting caught up in the details, which may cause you to quit before you’ve gotten started. To help avoid over planning, write a business plan that is easy to read and understand. It is important to plan enough to be ready to take action but not necessary to map out every minute detail. You just need a solid plan that will lay the groundwork for you to get started and help keep you excited about your new venture. Keep in mind that this business plan is for you and is intended to increase your chance for success so keep things simple.

The best way to write a business plan that is easy to read and understand is to create your business plan in an outline form. This form makes the plan easier to navigate so you can quickly locate different sections throughout. Use bullet points whenever possible as long wordy paragraphs can be difficult to follow. With an outline structure most people can expect their business plan to be around 3 to 5 pages.

Below is an example business plan in outline format. This was my first draft for a web design company I started.

Before you get started with the business plan there is one more important step to take. Choose your business name. One of the preliminary steps for a business start up is to choose a name to represent your company. Choosing the right name will greatly increase your chance for success. Consider choosing a name that is descriptive of what your business will accomplish. A descriptive name allows others to immediately identify the purpose of your business. For example, if you are a florist living in Austin, TX, you may come up with the name “Austin Flower Designs”. This name helps the consumer quickly recognize your business services.

However, you may also consider choosing a name for it’s memorable qualities. An example of this might be a company named “Four Eyed Monkey“. This is one of my companies and I chose this because the name itself and the logo of a four-eyed monkey are unique and memorable to those I do business with. This is a good reminder that it is important to consider your overall branding strategy when coming up with your business name. Having a memorable logo to go along with your name may help you have a more successful marketing campaign.

Additional considerations when selecting a name:

• Keep your name short. If it is too long it will be hard to remember. Example: The Flower and Small Gifts Shop on the Hill.
• Avoid abbreviations and acronyms. Example: A flower and small gift shop called F.S.G.S., Inc.

Once you have secured a business name it is time to get started writing the business plan. It may work best if you approach each section by writing a list of your ideas for that section. Later you can go back and narrow down some of the ideas and information. It is important at first to get everything you are thinking written down. Let’s get started.

Your Vision

You need to begin by defining what the vision or purpose for your business is. Your vision is very important because it is what guides your business decisions so make it simple, clear and straightforward. The easiest way to do this is by answering the questions, “How am I going to reach my vision?” and “Why do does my business exist?” Once you have defined your purpose and identified how you are going to achieve it try to imagine what the future for your business might be.

Product or Service

Next, identify what your product or service is. It is important to be very clear in this section. If I am starting a web design company I may just put that my service is web design. But what does that mean? This description needs more detail. Instead I may put, e-commerce websites for small businesses, logo design, and online marketing consulting services. You may notice that even some of those could still include more detail but you get the basic idea, be thorough in your description of products and/or services.

Costs

Defining your costs and profit is one of the most important aspects of a business plan. To find these, three things need to be considered: What costs will I incur to provide my product or service? What will I charge my clients or customers? What will my profit be? These are very important questions because they let you know what to charge customers, help you set your budget and sales goals and determine overall profitability.

The best way to begin analyzing your costs is to write down all the expenses you think you will incur with your product or service. The cost of producing a product or service may vary from one cost to a number of different costs that when added together provide your total cost for that product or service.

Once your costs have been determined you can use this amount as a base to define what you will charge the customer for your product or service.  You may then determine your profit margin by subtracting your costs from the cost to your customer but keep in mind there may be additional costs to consider before you calculate your overall profit. For example, your services may require hiring a support staff, which will add additional costs you must take into account.

Staff and Wages

Hiring employees can make a new business start up more complex, financially and otherwise, but it may be necessary to assure that your business operates smoothly. Before hiring employees there are a few things that should be considered. To begin, don’t hire employees just because you don’t want to do the work. Starting any business is hard work and you have to be ready for that. You must decide whether you really need an employee before you take on that responsibility. In the long run, it may be easier for you to do the work at hand then to hire another employee.

While hiring employees may make your perceived workload easier, you must consider the added emotional responsibility as well. You must manage employees and meet their requested needs. If an employee is having trouble at home, you may become a part of dealing with those problems. You also have to consider that there are added expenses to having employees like wages, insurance, and the need for office space to have a place for the employees to work.

I am in no way saying that employees are bad but try to be realistic about the added responsibility that comes with hiring people.

One alternative to consider is hiring contracted workers or freelancers. In most cases when you hire a contracted worker they can work from their home and act as a separate business or individual. This means that you are not responsible for their taxes, insurance, etc. Another added bonus is that contracted workers in many cases work harder because they want to keep working for you as opposed to an employee who may find it easier to slack off here and there.

If hiring others is unnecessary then just fly solo for now. It is be much easier to hire people out of need than to let someone go when there is no work for them to do.

Budget

You must have a solid financial plan if your business is going to be successful. One of the biggest assets to your financial plan is a budget. In this part of your business plan you need to make a budget for your first year of business. In this section you will need to refer back to the cost section of your business plan. Your budget allows you to organize all of your projected expenses and projected income into one place that is easy to follow and utilize.

Your budget will consist of the following:

• All operating expenses such as office space, Internet service, and phone line
• Equipment and capital expenditures
• Wages for support staff
• Expected sales
• Projected income from all sources

It is very important that you include every expense and source of income you can think of. Remember this business plan is for you so don’t leave something out of your budget because it makes it look less attractive. Include everything because if you want your business to be successful you have to be honest with yourself.

Competition

Having competition is a good thing. When there is competition it means that there is a need. As much as you may like to be the only one out there doing what ever it is you do, most likely that’s never going to be the case. Competition gives you the opportunity to do a better job than someone else, it keeps you on your feet and prevents you from being lazy.

Since there is competition out there you need to know everything you can about it. You will need to research what the competition is offering and how they are marketing it. This will help to assure that your product or service is better than your competitor’s.

It may feel like you are wasting time doing research when all you want to do is get started with your business but finding out about your competition will give you a better chance at success. Make it fun. Think of yourself as an undercover spy trying to discover the inner workings of your competition. Call your competitor and find out what their prices are and request they send you their product brochure or any other materials they may have. The more information you have the easier it will be for you to successfully compete.

Writing a business plan will take you some time but it will pay off in the end, I promise. Just remember that even though you have a plan and all your goals are written down none of it means anything if you don’t take action. Take action. When you run into roadblocks, and you will trust me, push through them and keep going. Persistence will pay off in the end.