Small Business Growth: It’s A Capital Great Idea

As a marketing business coach I have seen anywhere from six months to a year. The key is to be in a position to sustain yourself. Also, you want to have enough capital to not only sustain your business but to grow it.

There are the two components of the small business growth cycle. You must have a marketing business plan and sufficient capital. Otherwise your probability of getting where you want to go is greatly diminished.

Small Business Growth-Do You Have The Capital

What is capital? You hear about it all the time. Quite simply, it is the funds you are willing or capable of investing in your business and business growth without knowing when you may see a return.

This is where I have seen most business owners come up short. Somehow they assume that magically there will be enough profit in what they do to support business growth.

Starting your own business is a great challenge. But, running a business in a manner to where it can grow is an even bigger challenge.

In the beginning most businesses spend more money on start up and the first few months than anticipated. This leaves them short of capital to invest in the business. As a personal business coach I can assure you that it is a very good idea to have a budget.

This way you know in advance what to expect and hopefully have contingency plans if things, as they usually do, don’t work out as intended. If you don’t have extra capital or know where to get it then you really don’t have a plan for your business growth.

Small Business Growth-It Depends On Capital

As a personal business coach I have observed that the number one killer of small businesses and the dreams that they represent is lack of capital. Very often small business will start out and be growing.

Yet, the funds aren’t there to help build the processes and structure to support the growth After the unforeseen expenses and unexpected needs there isn’t much left over for business growth.

This is a problem for several reasons.

If you can’t fund growth, your level of service or the product quality that enabled you to grow diminishes.
When your level of service or product quality diminishes there is a decline in customer confidence.
With a decline in customer confidence there starts to be a decline in business.
If the decline isn’t addressed early on then the business gets a bad reputation and then business growth goes from a hill to climb to a mountain that cannot be scaled.

Value By Recasting Financials

Recasting the business financials is imperative to determine the true fair market value of a business. The process allows the business to be thoroughly and objectively scrutinized to prevent a false financial status of a business, leaving only those things that are truly representative of the real value of the business.

Some of the factors that can create a false impression of a company’s worth could include travel expenses, incentives, charitable gifts and loans. Expenses typically used as part of business strategy for maximizing tax reduction or that may mix personal and business accounting can all distort the real picture of the business’ financials.

Recasting financials can be helpful anytime a buyer’s eye view of a business’ financials is required. When seeking a true reflection of business assets, liabilities and earning power, recasting is a necessity. Recasting financials is a way of correcting the false impression that may be created by company financial statements, which include those other items that should not be used when assessing the true financial state of a company.

Once financials have been recast, the next step in assessing the true value of your business is assigning an opinion of value. Together, these steps make up the professional business valuation, which includes data collected for the financial recasting, as well as other factors that impact true business value (such as holdings, real estate, intellectual and proprietary properties, charitable standing, patents, established business history, comparative standing with competitors, and assets and liabilities).

A professional business valuation looks at all the factors that impact the true value of a business and utilizes proven methods to determine real value. This can benefit the business owner in day-to-day business, assessing how to implement new strategies, evaluating new methods to optimize efficiency, and improve earning potential. Through this process, the business is scrutinized in search of line items that should be cut or changed.

While obtaining a professional business valuation for your business is essential when considering the sale of your business, each business owner should complete an annual valuation to ensure all management decisions are made with the fair market value in mind. The valuation establishes an objective and true value that is not impacted by emotion or sentiment, thereby creating a strong position in negotiations with prospective buyers and internal management teams.

Start Business Referral Networking for the Shy

Don’t worry about large social business settings. You can build an excellent business network by quietly helping to solve problems and as a result, make lasting business contacts. Here are three great ways to get you on the road to building an excellent referral network that can help grow your business:

As you come across prospects for a business with whom you would like to network, make the referral and send that business (owner or salesperson) an email or note letting them know you gave them a referral and who you referred.

You probably cringe at the idea of business networking groups and their breakfast meetings, but do you take part in any social activities? You can still network in social situations and use those activities to build your business referral network! Maybe you’re in a local recreational activity (poker game with friends; quilting), local organization or cause (church; non-profit fund drive), hobby (fishing; boating), or sport (tennis; cycling). It could be almost anything that you do or attend regularly. These are all opportunities to develop friendships with people who have a common passion or interest like yours, help each other on a social level and eventually develop some networking opportunities. I’m absolutely positive that at least some of these people you meet will own a business or be in sales and could use referrals. This is an example of “doing what you love” and using that passion to build valuable networking relationships. There are connections that can eventually help you get more referrals and grow your business. An important thing to remember in these situations is to have fun first, make friends, and enjoy the social activity. Use natural opportunities to seek referrals (both giving and getting)… and don’t force any situation. Building your business this way is often slow, but can also yield very good results over time.

Consider an online business referral network that allows you to connect with local business people whom you can meet and create referral relationships. These online networks don’t make you go to meetings or do presentations like the local groups that gather weekly. If you join an online site, most of your interactions will be through their website. However, I would still recommend that you periodically talk to each business member in the network you create on at least a quarterly basis, if for not other reason than just to say “hi” and see how their business is going. It’s a great opportunity to ask them if you can help them with anything in particular, and also update them on your business. It’s important to realize that the internet doesn’t necessarily replace the phone and/or in-person interactions that you may need in order to make long-term business networking a real success. The internet simply it simply enhances your ability to network and automates some of the tasks.

Business networking doesn’t have to be about weekly group business meetings, presentations or putting yourself in very uncomfortable public situations. Great business networking is simply about helping people solve problems. By referring someone to a good business you are helping them solve an issue. By providing a referral to a good business that you know, you are helping them solve the problem of getting new customers. When you solve problems, people remember you… and with often try to help you in return. Business networking, especially when it involves the passing of a referral, is about trust. Trust is built over time. So, don’t worry about getting thrown into a random group of people at a local networking group. Seek out specific businesses that you trust and network within social activities that you enjoy. Online business referral networks that are made up of local members are also a non-aggressive, “soft” way to find business people who might like to be part of your personal referral network. Using any of these methods can help you on the path to building solid relationships that can help grow your business by getting more referrals.

Plan Consultant: What They Can Do for You

If you have been considering hiring a company offering business consulting solutions, you will have to choose among one of the several types of consultants that can help you. Business plan writing can entail the help of one or more consultants to read, study, and assess your business arrangement. These consultants can help refine and polish your business plan before you present it to your investors. Investing on consultants is a wise choice to make. Read on below to find out why you should include hiring business plan experts as part of your business arrangement creation.

A business plan consultant can provide you with expert advice regarding the possible needs and wants of your investors. When writing a business strategy, it is important to consider the readers or, in other words, your future investors. An experienced consultant will prove to be beneficial for you since they have gone through the process so many times. They should have the capability to picture what specific types of investors are looking for in a business strategy or plan. Once they have read your initial draft, they can give you specific and proper advice and feedback to help convey your message and intention clearly. Hiring the professional services of a consultant reduces wasted time since you will avoid rejected deals and other pitfalls due to the lack of risk and return on investment for investors.

They know what particular approach will work effectively for your business. Once again, the experience of your business consultant will come into play with this benefit. Their experience working with a lot of business owners gives them a clearer insight on the possibility of your plan. Accessing previous case studies with similar situations as yours can help them write and evaluate a better business arrangement for you. Moreover, the successful case studies can help them give you a good number of effective tactics and ideas to gain more information regarding your target customers and business data.

How to Start a Home Based Business and Grow It

One of the downsides to opening a home-based business that operates with local clients if they can come off as unprofessional that you simply work out of your home as it pertains to the services that you render. As such, you may want to work directly with the client at their location or providing services such as bookkeeping or other personal services that do not necessarily need to be rendered within your home. Over time, you may want to be to able to afford a small office space that will allow you to give your business and more professional look as it pertains to working with local clients.

It should be noted, on a side discussion, as it pertains to financing a small business it is somewhat typical. The small business administration typically does not allow for loans made to home-based businesses. This is primarily due to the fact that one of the reasons why the small business administration was created was so that traditional businesses could be launched and individuals would hire other people within their small business facilities. As such, you may be an excellent candidate for a SBA loan however you are going to need to move into a traditional facility before you’re able to receive this type of financing. However, there are a number of other types of financing methodologies available to you. This may include using some of your own savings, using some income from your 401(k) or IRA accounts, taking out a personal loan, using credit cards, or working with a potential investor that can provide you with the financing that you need in order to launch a business. Of course, there is no proper way to ever play in the business, there are a million ways to skin a cat, and as such you may want to tap some unconventional means as it pertains to obtain financing for your home-based business. As it pertains to using credit cards or personal loans in order to finance your home-based business, this can be a very expensive endeavor. Most personal loans are unsecured by any type of tangible property more tangible asset typically has a substantially higher interest rates in the back associated with a secured loan. In most cases, your interest rate can vary anywhere from 9% to 20% per year depending on your overall credit score. As such, it is absolutely imperative for use loan financing in order to start your home-based business recommend that you very carefully to all potential financing options for using personal loans or credit cards. In time, there are other types of lending facilities that you can use as it pertains to receiving the financing that you may need on the ongoing basis.

After you determine which type of home-based business one a start, it is time to start the preparation of your business plan. Here, you’re going to want to create a blueprint of how you intend to provide your services or products the general public, how you will integrate certain procedures and protocols into your day-to-day activities relating your to your home-based business, developing a well focused financial model that has a profit and loss statement, cash flow analysis, balance sheet, pregame analysis, business reaches page, and general assumptions page that will be used in conjunction with your company, and a detailed overview of how you intend to market your business.