Business Plan Tips
Read these 8 Business Plan Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Businesses tips and hundreds of other topics.
Reduce Inventory
If you have products in your inventory that don't sell well, reducing the sale price and liquidating these products can be an effective way of eliminating cost of inventory at year end. Some products could be useful to a charitable organization, and could be donated to remove them from your inventory. The IRS also allows a deduction for any inventory that is considered obsolete and no longer salable. If past sales records or other circumstances justify the position that particular products in your inventory are no longer salable, you can exclude them from your year-end inventory value. Discuss these ideas with your tax advisor to determine their applicability to your business.
Cappuccino, Anyone?
There are lots of ways to conduct market research and plan strategy, whether the target of your business is somewhere in the United States or abroad. For a productive planning or research session that's also pleasant, try this unorthodox approach. Spend time at your local library and bookstores. Many bookstores now have their own coffee shops where patrons can spend time reading without buying. Take stacks of periodicals and books to the café and leisurely conduct
your research over a cappuccino! (And remember this bookstore when you do decide to purchase!) Work doesn't have to be stressful to be productive!
Market Research
Who said market research couldn't be fun? When you need information about competitors or the general business climate in your city or elsewhere, look for interesting events taking place, such as festivals, feasts, fairs, and jamborees that involve large numbers of people. Large events give you the chance to immerse yourself in local culture and customs, to ask questions, and make new contacts. Read the local newspaper. When you're back at your office, remember most papers also carry their news on a website. Other good sources for information include local libraries, chambers of commerce, Internet sites, and volunteer groups like Rotary and Kiwanis clubs.
Why Do Banks Accept Loan Requests?
As a customer, the loan decisions made by your bank may seem a bit mysterious. A bank officer takes your request. A committee considers the request and a decision is handed down. Frequently the reasons for the decision aren't clear.
It may help to understand the factors the bank considers when making a loan. Here is a partial list:
1. Your financial performance
2. Your behavior in regard to previous loan requirements.
3. The confidence the bank has in you
4. The profitability of the loan
5. Bank policy regarding loan mix
6. The industry you're in
7. Prior bank history with companies in your industry
Some of these factors are within your ability to control and some are not. Always ask your banker to explain the loan decisions make with regard to your company.
Evaluate Plans
This doesn't seem like very sound advice. Why not just do it right the first time? Because the topic is advertising, and the only way to do it right is to do it again and again! Advertising experts tout the wisdom of repetitive ad campaigns. The current pace of business and personal lifestyles is so frantic that frequent reminders are necessary to influence buying habits.
As you evaluate your advertising plans, make sure to include media that will allow for frequent repetition. Make sure you stay in front of your potential customers!
Outsourcing Work
To streamline operations, work more efficiently, and to save money, more companies, than ever before, are outsourcing work. Consequently, more people than ever are hanging up their consulting shingles and trying to make a go of their own services business. When starting out, many freelancers commit one cardinal sin that, like a boomerang, often comes back to haunt them. The sin? Undervaluing their services. If you are in the early days of your own consulting or freelance business, resist the urge to take work at a discount to encourage companies to ue your services. Establish your value and your fee schedule and stick with it. If your services are value-added to companies and you market yourself well, the business will come.
Inventory Represents Profit
For tax purposes, inventory represents an investment of profit dollars. The more inventory that you have to report at the end of your tax year, the more taxable income you have. Accordingly, it's always desirable to reduce inventory at the end of the year to maximize tax deductions.
Just The Facts, Ma'am
Negotiations can get competitive, and sometimes very heated. How can you avoid things getting out of hand? Develop the ability to return the conversation to the factual issues on the table. Facts are usually rather non-controversial. A focus on facts will remove the "personal attack" atmosphere from the situation. Now, you can focus your efforts on deciding what the facts are -- usually a simpler and less controversial task.
| Guru Spotlight |
| Lynne Christen |
