START UP BUSINESS CONSULTING SERVICES
As A Start Up Business Smith Business Consulting Group
Will Assist And Guide You Through...
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Start Up Business Consulting Services
Include But Are Not Limited To:
- Determining validity of business concept and market research
- Developing your name and legal structure
- Building your business plan or business map to chart the future
- Determining funding routes and acquiring financing
- Determining and securing all licenses
- Choosing a qualified business centered bank
- Creating a viable and dynamic marketing and sales plan including content marketing
- Hiring effective and motivated employees
- Developing systems and metrics for accountability
- Choosing your branding and corporate identity
- Building a lead conversion website
- Leasing office, manufacturing or retail space
- Developing leadership skills with yourself and your team
- Developing a sales and customer service focused environment within your business with high accountability
- Letting your friends and community know about your business
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
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Start Up Business Marketing Consulting
Among all the things that your business does or will do, one of the most important is probably marketing. Ultimately nothing else that you do is going to matter if you don't get the sales. Most industries are very competitive so a good marketing campaign is critical. This can be a problem for a lot of start up and small businesses since they likely don't have the resources to have a full time marketing department. That often means that the marketing plan needs to be run by somebody who doesn't actually have an experience in the field. This is where Smith Business Consulting Group can help. Smith Business Consulting Group will help your company to develop and implement your marketing plan so that you can maximize your sales.
The first thing that you need to do, before you even start to market a product is do some market research. You need to know how many potential customers are out there and who they are. You are also going to want to know who your biggest competitors are and how your product is different from theirs. There is no point to launching a product if there is no market for it or if the competition is too tough. Smith Business Consulting Group will help you to do your market research to make sure that launching product is actually a good idea.
Once you have decided that it is a good idea to launch the product you need to create a marketing plan. This is the bread and butter of what Smith Business Consulting Group does. It is not simply a matter of creating ads and hoping that they work. You are going to want to take that market research that you did and look and see who your potential customers are. From there you are going to need to formulate a plan to reach them. Marketing can be very complicated so it usually pays to get advice from an expert in the field such as the Smith Business Consulting Group.
The next step is to actually implement the marketing plan. Depending on your company's skills and resources you might take the plan and implement it yourself. Or you might choose to have Smith Business Consulting Group help you to implement the plan. Both approaches work and the right one is going to depend on the situation.
One of the most important things that you are going to need to do with your marketing plan is to assess how well it is working. There is little value to continuing with a marketing campaign that is clearly not working. Unfortunately a lot of companies have no idea how well their marketing plan is working. This is a problem since it means that they won't be able to adjust the plan to get maximum results. Smith Business Consulting Group will help you to gather the information that you need in order to analyze your marketing plan and make sure that you are getting maximum benefit from it. We will also help you enhance and adjust the plan if it is clearly not working.
The first thing that you need to do, before you even start to market a product is do some market research. You need to know how many potential customers are out there and who they are. You are also going to want to know who your biggest competitors are and how your product is different from theirs. There is no point to launching a product if there is no market for it or if the competition is too tough. Smith Business Consulting Group will help you to do your market research to make sure that launching product is actually a good idea.
Once you have decided that it is a good idea to launch the product you need to create a marketing plan. This is the bread and butter of what Smith Business Consulting Group does. It is not simply a matter of creating ads and hoping that they work. You are going to want to take that market research that you did and look and see who your potential customers are. From there you are going to need to formulate a plan to reach them. Marketing can be very complicated so it usually pays to get advice from an expert in the field such as the Smith Business Consulting Group.
The next step is to actually implement the marketing plan. Depending on your company's skills and resources you might take the plan and implement it yourself. Or you might choose to have Smith Business Consulting Group help you to implement the plan. Both approaches work and the right one is going to depend on the situation.
One of the most important things that you are going to need to do with your marketing plan is to assess how well it is working. There is little value to continuing with a marketing campaign that is clearly not working. Unfortunately a lot of companies have no idea how well their marketing plan is working. This is a problem since it means that they won't be able to adjust the plan to get maximum results. Smith Business Consulting Group will help you to gather the information that you need in order to analyze your marketing plan and make sure that you are getting maximum benefit from it. We will also help you enhance and adjust the plan if it is clearly not working.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Business Operation Technology Tools
Consulting Services
Smith Business Consulting Group Will Counsel and Assist You to Select the
Most Effective and Productive Technology for Your Start Up Business
Accounting software. This is important, even if you have your own accountant or bookkeeper. Accounting software allows you to see your profits and losses at a glance. It can also help you design and maintain a budget for your business.
Planning software or tools. A calendar system is a must. There are many online planning systems that can be utilized to help you keep your calendar organized. Find a system that meets your business' needs and be sure to stick with it.
Time tracking software. A time tracking device will help you determine what tasks result in a profit and what tasks do not. This will help you determine what tasks can be eliminated, outsourced, or improved. If you’re looking at software that requires a fee, ask for a free trial first to make sure it’s the right software for you.
Email management. As a business owner, you probably use several email accounts to manage the various aspects of your company. If you streamline these emails to one account, you'll be able to stay organized and abreast of your emails.
Mobile internet access. Access to the internet on your mobile device will not only make your life easier, it will also help you maintain a positive reputation for your business. For example, if you are able to follow up with a client by email immediately after a meeting, you will be showing that you are accessible, timely and professional.
Information Technology (IT) is another area of your business where we provide support and value. Our goal and focus is to increase your efficiency by:
Planning software or tools. A calendar system is a must. There are many online planning systems that can be utilized to help you keep your calendar organized. Find a system that meets your business' needs and be sure to stick with it.
Time tracking software. A time tracking device will help you determine what tasks result in a profit and what tasks do not. This will help you determine what tasks can be eliminated, outsourced, or improved. If you’re looking at software that requires a fee, ask for a free trial first to make sure it’s the right software for you.
Email management. As a business owner, you probably use several email accounts to manage the various aspects of your company. If you streamline these emails to one account, you'll be able to stay organized and abreast of your emails.
Mobile internet access. Access to the internet on your mobile device will not only make your life easier, it will also help you maintain a positive reputation for your business. For example, if you are able to follow up with a client by email immediately after a meeting, you will be showing that you are accessible, timely and professional.
Information Technology (IT) is another area of your business where we provide support and value. Our goal and focus is to increase your efficiency by:
- Identifying repetitive tasks;
- Identifying operations that can be done automatically;
- Customizing solutions that fit specific needs;
- Creating applications that will spur growth and help create a proactive approach;
- Implementing solutions and training personnel.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
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Business Coaching For Start Up Businesses
If you're starting a business and you've found yourself wondering how to effectively and efficiently start and expand your business to ensure profitability, hiring a business coach is a step toward identifying and achieving your business goals.
A business coach is an advisor who'll work with you to identify your strengths and weaknesses, help you set achievable goals and teach you how to track your progress, and motivate you to make the very best of your business based on your own needs.
If you were a professional athlete who already had the skills needed to play your sport but wanted to get better at your game, you'd hire a coach. They will work with you behind the scenes to help you become stronger and more focused, making you a better player. A business coach will do the same thing for your business, using their experience and knowledge to help you find solutions that will help you fulfill your potential. They act as a friend and advisor, looking at your business with an unbiased eye and guiding you in everything from time management to employee conflict resolution.
You may be surprised to discover that business coaches can be surprisingly affordable, particularly when weighed against the financial benefits of their expert advice. For as little as a few hundred dollars per month, a professional business coach can help you to increase your business's productivity, profitability, customer service satisfaction, employee morale and management turnover. With many coaches operating via e-mail and fax, you may not even have to be in the same city as your coach but they're just a phone call away with advice when you need it.
A business coach can be your secret weapon in starting and expanding your business or making your career flourish, whether you need advice on website design, create marketing strategies or help in learning the skills to set effective goals. Consider hiring a business coach as a positive step towards reaching your full business potential. As a behind-the-scenes advisor, your business coach can help you earn more money, operate your business more smoothly, or become a more effective leader.
A business coach is an advisor who'll work with you to identify your strengths and weaknesses, help you set achievable goals and teach you how to track your progress, and motivate you to make the very best of your business based on your own needs.
If you were a professional athlete who already had the skills needed to play your sport but wanted to get better at your game, you'd hire a coach. They will work with you behind the scenes to help you become stronger and more focused, making you a better player. A business coach will do the same thing for your business, using their experience and knowledge to help you find solutions that will help you fulfill your potential. They act as a friend and advisor, looking at your business with an unbiased eye and guiding you in everything from time management to employee conflict resolution.
You may be surprised to discover that business coaches can be surprisingly affordable, particularly when weighed against the financial benefits of their expert advice. For as little as a few hundred dollars per month, a professional business coach can help you to increase your business's productivity, profitability, customer service satisfaction, employee morale and management turnover. With many coaches operating via e-mail and fax, you may not even have to be in the same city as your coach but they're just a phone call away with advice when you need it.
A business coach can be your secret weapon in starting and expanding your business or making your career flourish, whether you need advice on website design, create marketing strategies or help in learning the skills to set effective goals. Consider hiring a business coach as a positive step towards reaching your full business potential. As a behind-the-scenes advisor, your business coach can help you earn more money, operate your business more smoothly, or become a more effective leader.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Starting A Business: Some Things You Need To Know
What Business Should I Start?
If you’re keen to be your own boss but are asking ‘what business should I start?’ there’s a multitude of options available, including those that support the lifestyle you want to lead or make extra cash to supplement your household income.
Part-time businesses: If you want to run a business while keeping up with other commitments, why not start a part-time business?
Buying a franchise: Consider starting a franchise to run your own business with the training and support of a big-name brand behind you.
Buying a business: Buying an existing business is another popular option that can carry less risk than starting a new business.
Start ups you can run from home: Modern technology means an office environment is no longer necessary many businesses can be run entirely from home.
Budget businesses: Budget-conscious entrepreneurs need not limit their options; you can start many businesses for under $1,000.
Popular industries: Other popular sectors to start a business include green businesses, service and retail ventures, and online businesses.
If you’re keen to be your own boss but are asking ‘what business should I start?’ there’s a multitude of options available, including those that support the lifestyle you want to lead or make extra cash to supplement your household income.
Part-time businesses: If you want to run a business while keeping up with other commitments, why not start a part-time business?
Buying a franchise: Consider starting a franchise to run your own business with the training and support of a big-name brand behind you.
Buying a business: Buying an existing business is another popular option that can carry less risk than starting a new business.
Start ups you can run from home: Modern technology means an office environment is no longer necessary many businesses can be run entirely from home.
Budget businesses: Budget-conscious entrepreneurs need not limit their options; you can start many businesses for under $1,000.
Popular industries: Other popular sectors to start a business include green businesses, service and retail ventures, and online businesses.
What Should I Do Before I Start A Business?
Choose the appropriate professionals to assist you throughout the start up process: A business consultant, accountant, banker, lawyer and an insurance agent will all prove extremely valuable throughout this process.
Choose a business structure: Are you going to be a sole proprietor, in a partnership, or even start as a LLC or corporation ? You will need to decide what business structure you adopt early on, consult an accountant or lawyer.
Market research: Thoroughly research your market to assess the viability of your business idea or hire a business consultant to preform this task.
Write a detailed and comprehensive business plan: Writing a business plan is essential. Make sure you have a clear road map before starting out. This is especially important as you may show this business plan to potential investors a business consultant can help be of great assistance with writing this.
Think about your branding: Believe it or not, a business’ name, logo, website and business cards can be some of the differences between failure and success.
Set up a website: Learn how to register a domain name and build or have built a well-designed website with substantial content for your business.
Get your head around your start-up’s finances: Learn how to deal with bookkeeping and cash flow issues for the first time, you will eventually need to hire an accountant.
Choose the appropriate professionals to assist you throughout the start up process: A business consultant, accountant, banker, lawyer and an insurance agent will all prove extremely valuable throughout this process.
Choose a business structure: Are you going to be a sole proprietor, in a partnership, or even start as a LLC or corporation ? You will need to decide what business structure you adopt early on, consult an accountant or lawyer.
Market research: Thoroughly research your market to assess the viability of your business idea or hire a business consultant to preform this task.
Write a detailed and comprehensive business plan: Writing a business plan is essential. Make sure you have a clear road map before starting out. This is especially important as you may show this business plan to potential investors a business consultant can help be of great assistance with writing this.
Think about your branding: Believe it or not, a business’ name, logo, website and business cards can be some of the differences between failure and success.
Set up a website: Learn how to register a domain name and build or have built a well-designed website with substantial content for your business.
Get your head around your start-up’s finances: Learn how to deal with bookkeeping and cash flow issues for the first time, you will eventually need to hire an accountant.
How Do I Raise Money For My Business?
Investigate potential grants: Small business grants are extremely useful, but can be difficult to come by.
Apply for a bank loan: Although bank lending to small business is falling, most businesses end up approaching the bank at some point.
Get funding from the government: The government operates various initiatives to help start-ups get off the ground. As a starting point, see whether the government’s SBA can help you.
Ask for help from your friends and family: It’s not hard to see why many entrepreneurs start with personal finance or the assistance of friends and family, but try not to put your house, or anyone else’s, on the line.
Consider invoice financing: If you’re finding bank loans difficult to come by, look into invoice finance as an alternative funding option.
Seek investment: Angel investors can not only provide funding but valuable to early-stage businesses; be wary of giving away too much equity early on, however.
Raise finance from the crowd: If you have an idea that you think will be popular with the masses, peer-to-peer crowdfunding is enjoying an explosion in popularity.
Investigate potential grants: Small business grants are extremely useful, but can be difficult to come by.
Apply for a bank loan: Although bank lending to small business is falling, most businesses end up approaching the bank at some point.
Get funding from the government: The government operates various initiatives to help start-ups get off the ground. As a starting point, see whether the government’s SBA can help you.
Ask for help from your friends and family: It’s not hard to see why many entrepreneurs start with personal finance or the assistance of friends and family, but try not to put your house, or anyone else’s, on the line.
Consider invoice financing: If you’re finding bank loans difficult to come by, look into invoice finance as an alternative funding option.
Seek investment: Angel investors can not only provide funding but valuable to early-stage businesses; be wary of giving away too much equity early on, however.
Raise finance from the crowd: If you have an idea that you think will be popular with the masses, peer-to-peer crowdfunding is enjoying an explosion in popularity.
How Do I Set Up My Business? (The Basics For Setting Up)
File business structure paperwork: Once you have made an informed decision on your business structure, consult an accountant, CPA, or lawyer.
Set up business banking: Get set up with a business bank account, consult a banker.
Get equipped: Think about what equipment you will need to start your business. Equipment such as PCs, printers and smartphones are more or less essential, be diligent to ensure you make the right choices and make sure you have all that you need.
Consider a virtual office: If you plan to set up a home office, look into whether a virtual office is right for you.
Find premises: If you need external premises, buying property is a huge step; unless you’re absolutely committed, leased premises are normally more suitable and offer some flexibility.
Location, location, location: If you’re starting a retail business, location is crucial. Make sure you’re in the know and have explored all avenues before committing to a property.
File business structure paperwork: Once you have made an informed decision on your business structure, consult an accountant, CPA, or lawyer.
Set up business banking: Get set up with a business bank account, consult a banker.
Get equipped: Think about what equipment you will need to start your business. Equipment such as PCs, printers and smartphones are more or less essential, be diligent to ensure you make the right choices and make sure you have all that you need.
Consider a virtual office: If you plan to set up a home office, look into whether a virtual office is right for you.
Find premises: If you need external premises, buying property is a huge step; unless you’re absolutely committed, leased premises are normally more suitable and offer some flexibility.
Location, location, location: If you’re starting a retail business, location is crucial. Make sure you’re in the know and have explored all avenues before committing to a property.
What Regulations And Practical Issues Should I Be Aware Of Before Starting A Business?
Protect your intellectual property: If you have a technology or ideas-based business, or even a simple company logo, make sure you protect your ideas by familiarizing yourself with intellectual property law or talking to an attorney.
Understand tax law: Whether you’re in business on your own account or already have employees, knowledge of tax law is essential, talk to an accountant, CPA or lawyer.
Get insurance: Prepare for the unknown by taking out the appropriate type of insurance for your business, and be familiar with the different insurance types available by talking to an insurance agent.
Comply with regulations: Don’t forget about your obligations under U.S. health and safety regulations. This is especially important if you plan to take on employees, talk with a lawyer.
Protect your intellectual property: If you have a technology or ideas-based business, or even a simple company logo, make sure you protect your ideas by familiarizing yourself with intellectual property law or talking to an attorney.
Understand tax law: Whether you’re in business on your own account or already have employees, knowledge of tax law is essential, talk to an accountant, CPA or lawyer.
Get insurance: Prepare for the unknown by taking out the appropriate type of insurance for your business, and be familiar with the different insurance types available by talking to an insurance agent.
Comply with regulations: Don’t forget about your obligations under U.S. health and safety regulations. This is especially important if you plan to take on employees, talk with a lawyer.
How Do I Source Suppliers And Wholesalers?
Source the best suppliers: You can source suppliers at trade fairs and exhibitions or on the internet but before entering into any agreement, be sure to negotiate the proper protection and necessary criteria for your business through a supply contract.
Pick a manufacturer: If you have a product that needs to be made on a large scale, make sure you establish a list of standards and criteria for choosing a manufacturer for your business’ product.
Consider sourcing from overseas: Don’t forget that overseas suppliers can often be more cost-effective; you will need to learn what to consider when sourcing products from abroad.
Source the best suppliers: You can source suppliers at trade fairs and exhibitions or on the internet but before entering into any agreement, be sure to negotiate the proper protection and necessary criteria for your business through a supply contract.
Pick a manufacturer: If you have a product that needs to be made on a large scale, make sure you establish a list of standards and criteria for choosing a manufacturer for your business’ product.
Consider sourcing from overseas: Don’t forget that overseas suppliers can often be more cost-effective; you will need to learn what to consider when sourcing products from abroad.
How Do I Recruit A Team?
Ensure the timing is right: Ask yourself some key questions (e.g. finances, sales projections etc.) before deciding whether the time is right to hire an employee, don’t rush into it hastily.
Write a compelling job description: To make sure you attract the best and brightest talent, a business consultant can assist with this.
Pose the right interview questions: Learn the best questions to ask during an interview also the questions you should never ask.
Investigate employment options: Read up on the different employment options for staff is your business more suitable for permanent employees, part-timers or freelancers?
Take heed of employment law: Ignore employment law at your peril, or your business could find itself confronted with expensive and potentially ruinous legal proceedings, consult a lawyer.
Offer training: Set up your new employees with the tools for success by establishing a formal employee training program, a business consultant can assist with this.
Ensure the timing is right: Ask yourself some key questions (e.g. finances, sales projections etc.) before deciding whether the time is right to hire an employee, don’t rush into it hastily.
Write a compelling job description: To make sure you attract the best and brightest talent, a business consultant can assist with this.
Pose the right interview questions: Learn the best questions to ask during an interview also the questions you should never ask.
Investigate employment options: Read up on the different employment options for staff is your business more suitable for permanent employees, part-timers or freelancers?
Take heed of employment law: Ignore employment law at your peril, or your business could find itself confronted with expensive and potentially ruinous legal proceedings, consult a lawyer.
Offer training: Set up your new employees with the tools for success by establishing a formal employee training program, a business consultant can assist with this.
How Do I Begin To Sell My Product Or Service?
Tell the world about your product or service: You need to know how you will promote your product/service and who you will target also learn about selling techniques as a starting point or consult a business consultant.
Get your product into stores: If you’re targeting retailers, learn about the retail channel necessary to get your product stocked in stores or consult a business consultant.
Keep up-to-date on e-commerce: E-commerce and selling online can be crucial and you should be aware of the ins and outs of internet sales or consult a business consultant.
Learn at minimum basic selling techniques: All businesses need to know the appropriate techniques to sell their specific product or service. A business consultant can be retained for this task.
Tell the world: Learn how to raise awareness of your brand by learning how to properly market your business or by consulting a business consultant for this task.
Tell the world about your product or service: You need to know how you will promote your product/service and who you will target also learn about selling techniques as a starting point or consult a business consultant.
Get your product into stores: If you’re targeting retailers, learn about the retail channel necessary to get your product stocked in stores or consult a business consultant.
Keep up-to-date on e-commerce: E-commerce and selling online can be crucial and you should be aware of the ins and outs of internet sales or consult a business consultant.
Learn at minimum basic selling techniques: All businesses need to know the appropriate techniques to sell their specific product or service. A business consultant can be retained for this task.
Tell the world: Learn how to raise awareness of your brand by learning how to properly market your business or by consulting a business consultant for this task.
Where Do I Get Further Advice And Support?
Get in-depth information: Contact and retain a business consultant to guide you through the entire start up process.
Be inspired: Read up on entrepreneurial success stories. Do research to learn about well known and bright entrepreneurs, learn how they overcame some of the early challenges they faced and how they grew into household names.
Chat with other entrepreneurs: Connect with other business owners through local meetings or online and network, network, network.
Get in-depth information: Contact and retain a business consultant to guide you through the entire start up process.
Be inspired: Read up on entrepreneurial success stories. Do research to learn about well known and bright entrepreneurs, learn how they overcame some of the early challenges they faced and how they grew into household names.
Chat with other entrepreneurs: Connect with other business owners through local meetings or online and network, network, network.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Elements Of A Sound Business Plan
If you can’t see where you’re going, you surely aren’t going to get there. That’s why you need a business plan: a clear, convincing, tangible road map that will align your enterprise and possibly convince investors (inside of 10 minutes) to place their bets. Here are the elements of any sound business plan.
Cover Sheet And Table Of Contents Kick things off with all the basics: company name, address, telephone number and contact info for all owners, along with a road map for the rest of the document.
Executive Summary Here, in no more than two pages, billboard all the important stuff. At the top, communicate your value proposition: what your company does, how it will make money and why customers will want to pay for your product or service. If you are sending your plan to investors, include the amount of money you need and how you plan to use it. You need to know the whole picture before you can boil things down, so tackle the summary after finishing the rest of your plan.
Market Opportunity Now that you’ve established the product or service you’re selling, explain who you’re selling it to and why that group is particularly attractive. You’ll want to answer questions like: How large is your target market? How fast is it growing? Where are the opportunities and threats, and how will you deal with them? (Again, highlight your value proposition.) Most of this information can be found through industry associations, chambers of commerce, census data or even from other business owners. Source all of your information in case you are asked to back up your claims or need to update your business plan.
Industry Analysis Don’t make the common mistake of thinking your business is unique. Instead, get real and size up the competition: Who are they? What do they sell? How much market share do they have? Why will customers choose your product or service instead of theirs? What are the barriers to entry? Include indirect competitors–those with similar capabilities that currently cater to a different market but could choose to challenge you down the road.
The Team Execution is just as important as the idea. That’s why institutional investors care a lot about who is on your team. Include profiles of each of your business’s founders, partners or officers and what kinds of skills, qualifications and accomplishments they bring to the table. If your business is a partnership, explain why those partners were chosen; if it’s a corporation, outline the corporate structure and introduce your officers. (Include resumes in the Appendix.)
Business Model / Operational Plan This section covers the nuts and bolts of the operation, including all revenue streams (product sales, advertising, services, licensing) and cost structure (salaries, rent, inventory, maintenance). List all assumptions and provide a justification for them. List any names of key suppliers or distribution partners.
Financial Performance / Projections If yours is a going concern, include at the very least a 12-month trailing income statement, balance sheet and cash flow statement. Then project all three statements forward at least three years. Also, do a break-even analysis that shows how much revenue you need to cover your initial investment. For early stage companies with only so much in the bank, the cash flow statement comparing quarterly receivables to payables is most important. Accounting profits are nice, but cold cash is what pays the bills.
Stress-Test Those Projections Don’t wait until disaster strikes to find out how your business will fare. Outline the worst-case, average-case and best-case scenarios for your business. Make sure you have enough cash to weather the worst of storms.
Sources And Uses Of Funds If you are trying to raise money from investors, they will want to know how you plan to spend it–and why you plan to spend it that way. Use this section to outline your estimated one-time start-up costs like site selection, new equipment, office furniture and logo design. Most entrepreneurs underestimate just how expensive starting a new business can be, so do your research before asking for funds.
Appendices A good business plan clearly conveys the basics of a business in a hurry; put supporting documents toward the back. This hodgepodge of related material might include resumes, credit histories, industry studies, blueprints, advertising materials, press coverage, copies of leases and contracts, letters of intent from future customers, patent and trademark registrations, partnership agreements and letters of incorporation.
Cover Sheet And Table Of Contents Kick things off with all the basics: company name, address, telephone number and contact info for all owners, along with a road map for the rest of the document.
Executive Summary Here, in no more than two pages, billboard all the important stuff. At the top, communicate your value proposition: what your company does, how it will make money and why customers will want to pay for your product or service. If you are sending your plan to investors, include the amount of money you need and how you plan to use it. You need to know the whole picture before you can boil things down, so tackle the summary after finishing the rest of your plan.
Market Opportunity Now that you’ve established the product or service you’re selling, explain who you’re selling it to and why that group is particularly attractive. You’ll want to answer questions like: How large is your target market? How fast is it growing? Where are the opportunities and threats, and how will you deal with them? (Again, highlight your value proposition.) Most of this information can be found through industry associations, chambers of commerce, census data or even from other business owners. Source all of your information in case you are asked to back up your claims or need to update your business plan.
Industry Analysis Don’t make the common mistake of thinking your business is unique. Instead, get real and size up the competition: Who are they? What do they sell? How much market share do they have? Why will customers choose your product or service instead of theirs? What are the barriers to entry? Include indirect competitors–those with similar capabilities that currently cater to a different market but could choose to challenge you down the road.
The Team Execution is just as important as the idea. That’s why institutional investors care a lot about who is on your team. Include profiles of each of your business’s founders, partners or officers and what kinds of skills, qualifications and accomplishments they bring to the table. If your business is a partnership, explain why those partners were chosen; if it’s a corporation, outline the corporate structure and introduce your officers. (Include resumes in the Appendix.)
Business Model / Operational Plan This section covers the nuts and bolts of the operation, including all revenue streams (product sales, advertising, services, licensing) and cost structure (salaries, rent, inventory, maintenance). List all assumptions and provide a justification for them. List any names of key suppliers or distribution partners.
Financial Performance / Projections If yours is a going concern, include at the very least a 12-month trailing income statement, balance sheet and cash flow statement. Then project all three statements forward at least three years. Also, do a break-even analysis that shows how much revenue you need to cover your initial investment. For early stage companies with only so much in the bank, the cash flow statement comparing quarterly receivables to payables is most important. Accounting profits are nice, but cold cash is what pays the bills.
Stress-Test Those Projections Don’t wait until disaster strikes to find out how your business will fare. Outline the worst-case, average-case and best-case scenarios for your business. Make sure you have enough cash to weather the worst of storms.
Sources And Uses Of Funds If you are trying to raise money from investors, they will want to know how you plan to spend it–and why you plan to spend it that way. Use this section to outline your estimated one-time start-up costs like site selection, new equipment, office furniture and logo design. Most entrepreneurs underestimate just how expensive starting a new business can be, so do your research before asking for funds.
Appendices A good business plan clearly conveys the basics of a business in a hurry; put supporting documents toward the back. This hodgepodge of related material might include resumes, credit histories, industry studies, blueprints, advertising materials, press coverage, copies of leases and contracts, letters of intent from future customers, patent and trademark registrations, partnership agreements and letters of incorporation.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Professionals You Need On Your Start Up Team
Entrepreneurs are often so focused on the product or service they are developing that they overlook the nitty-gritty details of what it takes to run a business, such as staffing a team of experts to guide them and advise them on important business matters. Often the long-term viability of a small business depends on who is on this team from the get-go. Here are a few key members who should be a part of any successful small business start up.
Accountant
A lot of entrepreneurs either take up accounting on their own or leave the math behind for the more immediately gratifying part of business, making money. But even if you’re good with numbers, the process of setting up a chart of accounts, preparing state, local, and federal tax returns, and reviewing your numbers can become a huge time vacuum. And once you start adding employees, the massive paperwork headache will only increase.
A lot of entrepreneurs either take up accounting on their own or leave the math behind for the more immediately gratifying part of business, making money. But even if you’re good with numbers, the process of setting up a chart of accounts, preparing state, local, and federal tax returns, and reviewing your numbers can become a huge time vacuum. And once you start adding employees, the massive paperwork headache will only increase.
Banker
A banker is invested in your business; as your business improves, so does the bank’s. You want someone you know will be dependable and has strong ties with the community. Build a relationship with a banker who is a generalist and who hasn’t jumped from bank to bank. A banker could become a great source of referrals, both in terms of business and other members of your team. After all, an experienced banker has likely worked with dozens of businesses like yours and should know which accountants and insurance agents are trustworthy and reliable.
A banker is invested in your business; as your business improves, so does the bank’s. You want someone you know will be dependable and has strong ties with the community. Build a relationship with a banker who is a generalist and who hasn’t jumped from bank to bank. A banker could become a great source of referrals, both in terms of business and other members of your team. After all, an experienced banker has likely worked with dozens of businesses like yours and should know which accountants and insurance agents are trustworthy and reliable.
Business Consultant
In many ways business consultants are the most vital role on a business team, and sometimes the most easily overlooked. However business consultants have what you probably don’t: a rich knowledge of how to successfully start a business including how to avoid the disastrous pitfalls that so many small businesses succumb to. This knowledge is gleaned from professional and usually personal experience acquired over many years. They give unbiased and insightful advice, providing a necessary balance to you, the boss. In short a business consultant will help you determine which strategies are best to deploy to get a quick start and which will ensure the long-term success of your business venture.
In many ways business consultants are the most vital role on a business team, and sometimes the most easily overlooked. However business consultants have what you probably don’t: a rich knowledge of how to successfully start a business including how to avoid the disastrous pitfalls that so many small businesses succumb to. This knowledge is gleaned from professional and usually personal experience acquired over many years. They give unbiased and insightful advice, providing a necessary balance to you, the boss. In short a business consultant will help you determine which strategies are best to deploy to get a quick start and which will ensure the long-term success of your business venture.
Lawyer
A good lawyer can help you with almost every part of your business: contracts, lawsuits and liabilities, trademarks, and copyright. Still, a lot of owners wait until they need a lawyer to hire one. Remember that the lawyer fee helps you avoid mistakes that bring you to court. And it is the long, drawn-out court battles that will really cost you.
A good lawyer can help you with almost every part of your business: contracts, lawsuits and liabilities, trademarks, and copyright. Still, a lot of owners wait until they need a lawyer to hire one. Remember that the lawyer fee helps you avoid mistakes that bring you to court. And it is the long, drawn-out court battles that will really cost you.
Insurance Agent
Insurance can be overwhelming. Just think about all the paperwork you may need to handle: a general liability policy (or a personal umbrella liability policy); disability insurance or life insurance; product liability insurance; casualty, loss of business, or credit insurance. And don’t forget your employees’ pension plans and other benefit plans. It’s important to choose an agent familiar with small businesses who can help you wade through all the paperwork and direct you to the best insurance companies for your specific needs.
Insurance can be overwhelming. Just think about all the paperwork you may need to handle: a general liability policy (or a personal umbrella liability policy); disability insurance or life insurance; product liability insurance; casualty, loss of business, or credit insurance. And don’t forget your employees’ pension plans and other benefit plans. It’s important to choose an agent familiar with small businesses who can help you wade through all the paperwork and direct you to the best insurance companies for your specific needs.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Some Additional Critical Areas Of Emphasis On The Journey
To Business Implementation, Growth & Success
Allow Smith Business Consulting Group To Be Your Guide
PEOPLE-Do you have the right people on your team in the right positions? Are your employees effectively working toward your business’ mission and goals? Will they be able to grow with your business, or will they leave after just a couple of years? Do you have effective tools for managing their performance, increasing their performance, rewarding high performers and eliminating poor performers?
An effective people plan gives you people whom you, and your clients, can count on and grow with.
An effective people plan gives you people whom you, and your clients, can count on and grow with.
PURPOSE-What is the vision that you have for your business? What strategy should you employ to achieve that vision? Are your goals and objectives aligned with your vision and purpose? Will you be satisfied once you achieve business success? How well is your staff aligned and committed to your vision and strategy?
A clear purpose enables you to lead your business, not just run your business.
A clear purpose enables you to lead your business, not just run your business.
PERFORMANCE MEASURES-What performance data should you regularly check in each area of your business (i.e., financial, sales, quality, morale, etc.)? Who's looking at them? What measures/metrics exist to ensure your business’ success and effectiveness? How do you decide where you need to spend your time, money, and additional focused effort?
With performance measures in place one can quickly make changes in process and see the results improve.
With performance measures in place one can quickly make changes in process and see the results improve.
PROCESS-Once you find an effective process, how do you reproduce it for the long-term? Now that you are growing, how do you make sure that the new team members deliver the same value that the company was built on? How consistent are your outcomes?
Consistent processes lead to predictable results.
Consistent processes lead to predictable results.
RECRUITING-How can you grow when you have open positions? How can you find time to hire someone when you are doing the work of the person who quit? Isn't there a better way? Plus, recruiters want 20% to 30% of a person's salary; who can afford that?
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Structuring Your Business
The good news is that you have choices. There are various ways that you can structure your business. If you are uncertain as to which way to go, consult an accountant and a lawyer for advice.
Sole Proprietorship
If you plan to work your business yourself, you might opt for the simplest approach and keep it a sole proprietorship. In this case, there is no need to register your business, which will allow you to start immediately. As your business is not registered, your accountant will simply file a schedule C for you when doing your income taxes.
Advantages
Partnership
In a partnership, two or more people own a business. Of course, as you can imagine, things get a bit more complicated when you take on a partner. All agreements need to be documented carefully and formally. There are three main types of partnerships:
Limited Liability Company (LLC)
A limited liability company is a relatively new choice for business owners, which began in the United States only in 1977. As its name indicates, it limits your personal liability, protecting you from debts and lawsuits. The owners are referred to as “members.”
Keep in mind that each state has different laws governing how to form an LLC, but there are some basic commonalities. You must:
Corporations
Corporations are the most complex business structure you can select. You have two choices for corporations: C-corporation and S-corporation. The C-corp is the regular corporation, while the S-corp, using Subchapter S of Chapter 1 of the IRS code, allows for specialized tax benefits but limits investment options.
Advantages
A few other details
DBA: If you don’t choose an LLC or a corporation, you might want to apply for a DBA (Doing Business As). If you’re a sole proprietor, for instance,and want to set up a bank account, you’ll need a DBA if you want to collect checks with your company name.
Licenses and permits: Depending on the kind of business that you are setting up, you may need special licenses and permits. Check your state’s websites (as well as your county’s and city’s websites) for details on what you may need.
Employer Identification Number (EIN): If you plan to have employees, you’ll need an EIN. An EIN is similar in importance to your social security number and can be obtained for free from the IRS. If you’re a sole proprietor without employees, you can skip this step.
Sales Tax Permit: If your state collects sales tax and you plan to sell a product or provide a taxable service, you will need to apply for a sale tax permit with the Department of Revenue. You must collect and pay sale taxes,filing the appropriate paperwork periodically.
Sole Proprietorship
If you plan to work your business yourself, you might opt for the simplest approach and keep it a sole proprietorship. In this case, there is no need to register your business, which will allow you to start immediately. As your business is not registered, your accountant will simply file a schedule C for you when doing your income taxes.
Advantages
- There are no costs related to this structure.
- You can start immediately.
- No legal paperwork (applause, applause).
- You control everything and reap all the profits.
- Taxes are easy, because your business isn’t taxed separately.
- You are personally liable for any debts and lawsuits, because there is no legal separation between you and your business.
- If you want to raise money, you may have trouble. Since you can’t sell stocks, people will be hesitant to invest in your business and banks will be reluctant to loan you money.
- If your profits are high, the IRS will tax your heavily.
Partnership
In a partnership, two or more people own a business. Of course, as you can imagine, things get a bit more complicated when you take on a partner. All agreements need to be documented carefully and formally. There are three main types of partnerships:
- General Partnerships: Usually in this case, the partners agree to split everything according to the percentage of their investment.
- Limited Partnership: This is a partnership that gives partners limited liability (as well as limited managerial input).
- Joint Venture: This is a short-term general partnership, as in the case of a single project.
- Partnerships tend to be easy and inexpensive to structure.
- You share the risks and financial commitments with others.
- You can utilize the skill sets of your partners and don’t have to be a one-man (or woman) show.
- You can sell your share and quit if things don’t go the way you like.
- Partnerships can be challenging, especially if the personalities of the partners don’t mesh well.
- If one person sells their share, you may wind up with a new partner you don’t want.
- There are no tax advantages, so if your income soars, so will your tax obligations.
Limited Liability Company (LLC)
A limited liability company is a relatively new choice for business owners, which began in the United States only in 1977. As its name indicates, it limits your personal liability, protecting you from debts and lawsuits. The owners are referred to as “members.”
Keep in mind that each state has different laws governing how to form an LLC, but there are some basic commonalities. You must:
- Create a business name that is unique, with the letters LLC tagged on at the end.
- File the articles of organization to legitimize your LLC.
- Obtain all your necessary licenses and permits.
- Announce your new business in your local paper (only some states require this).
- If someone sues your company, your personal assets are safe. Sometimes you may be asked to waive this, by giving a personal guarantee, which would negate this benefit of the LLC.
- The paperwork is minimal compared to other corporate structures, like an S-Corp.
- You can open bank accounts with an LLC, using your company name. You can also own property, take out insurance, and get loans under the shield of the LLC.
- It has a large filing fee to start up, plus annual renewal fees.
- Some find the structure of the LLC confusing.
- Some states impose a tax on an LLC. They can be called different things, such as a franchise tax, margin tax, etc.
- In most states, if one member leaves the LLC, things get complicated. Unless your operating agreement accommodates such a change, you may need to dissolve the LLC and start a new one.
Corporations
Corporations are the most complex business structure you can select. You have two choices for corporations: C-corporation and S-corporation. The C-corp is the regular corporation, while the S-corp, using Subchapter S of Chapter 1 of the IRS code, allows for specialized tax benefits but limits investment options.
Advantages
- It is a well-recognized structure that people respect. Investors feel more secure putting their money into a corporation.
- Your liability is limited.
- You can raise funds through your corporation.
- There are good tax benefits to having a corporation.
- Having a corporation might attract more qualified employees, especially if you offer stock options.
- There is a ton of paperwork involved to maintain a corporation.
- There are expensive administrative fees (although the filing fee is less than an LLC).
- Corporations are more complex, with stricter operational agreements. You are required to hold scheduled director meetings, record meeting minutes, etc.
- Most likely, you will need to hire an attorney to help you.
A few other details
DBA: If you don’t choose an LLC or a corporation, you might want to apply for a DBA (Doing Business As). If you’re a sole proprietor, for instance,and want to set up a bank account, you’ll need a DBA if you want to collect checks with your company name.
Licenses and permits: Depending on the kind of business that you are setting up, you may need special licenses and permits. Check your state’s websites (as well as your county’s and city’s websites) for details on what you may need.
Employer Identification Number (EIN): If you plan to have employees, you’ll need an EIN. An EIN is similar in importance to your social security number and can be obtained for free from the IRS. If you’re a sole proprietor without employees, you can skip this step.
Sales Tax Permit: If your state collects sales tax and you plan to sell a product or provide a taxable service, you will need to apply for a sale tax permit with the Department of Revenue. You must collect and pay sale taxes,filing the appropriate paperwork periodically.
We would like to invite you to discuss your business and find out more about all that Smith Business Consulting Group can do for you,
contact us or (248) 553-7000.
contact us or (248) 553-7000.
Start Up Entrepreneur's Self Assessment Questions
1. Do you have the skills needed to run this business?
2. Do you what help you will need and where you will find that help?
3. Do you have the time required to learn what you need to know?
4. Can you afford the money required to hire staff and consulting help if needed?
5. Are you genuinely interested in the particular business you have chosen to pursue?
6. Are you 100% committed to the business' success?
7. Are you willing to devote the time and resources necessary to develop a successful business?
8. Does your business have a product or service that fills an unmet need?
9. Is there sufficient consumer demand to support your business' product(s) or service(s)?
10. Can your product(s) or services(s) effectively compete in the marketplace?
11. Have you done or commissioned the market research necessary to answer question 10,?
12. Will you be able to understand your business financial statements such as cash flow, profit and loss, and balance sheet?
13. Are you developing a business plan that you can use throughout the life of your business?
14. Are you familiar with the technology it will take to run your business effectively and efficiently?
2. Do you what help you will need and where you will find that help?
3. Do you have the time required to learn what you need to know?
4. Can you afford the money required to hire staff and consulting help if needed?
5. Are you genuinely interested in the particular business you have chosen to pursue?
6. Are you 100% committed to the business' success?
7. Are you willing to devote the time and resources necessary to develop a successful business?
8. Does your business have a product or service that fills an unmet need?
9. Is there sufficient consumer demand to support your business' product(s) or service(s)?
10. Can your product(s) or services(s) effectively compete in the marketplace?
11. Have you done or commissioned the market research necessary to answer question 10,?
12. Will you be able to understand your business financial statements such as cash flow, profit and loss, and balance sheet?
13. Are you developing a business plan that you can use throughout the life of your business?
14. Are you familiar with the technology it will take to run your business effectively and efficiently?
Not knowing the answer to any of the above questions reduces the probability of your success,
Call Smith Business Consulting Group
(248) 553-7000
SMITH BUSINESS CONSULTING GROUP
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Specializing In Start Up, Small And Mid Size Business Consulting
248-553-7000
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