Posts Tagged ‘Ups’
What Are Budgets and Forecasts?
They are predictions of future income and expenses and cash flow. They also predict future performance with financial forecasts and projections and with financial models.
Why Budget and Forecast?
Budgets and forecasts provide a feasibility analysis. They can help develop a business model, review your key assumptions, and identify resource and capital needs. Budgets and forecasts can be used to find funding. They demonstrate the potential of your business to investors and lenders. Budgets and forecasts can also be used as a management tool. They can help you establish milestones and require accountability for accomplishing the milestones. They can help identify risks and show benchmarks. This will help the small business owner make the necessary adjustments to avoid the risks, to reach the milestones, and to measure up to benchmarks.
Why Are Forecast Important?
A forecast can establish measurements to guide management, to facilitate planning, and to facilitate goal-setting.
What Areas Do You Need to Forecast?
It is critical that you forecast your start-up costs so that you know how much it will cost to open your doors. You need to prepare estimated start-up financial statements and estimated short and long-term revenue forecasts. As part of your forecasts, you will review key concepts and issues that will make a difference in your company’s survival. You also need to forecast the resources you will need and set up a schedule for using and replenishing your resources.
Do Investors Want to See Forecasts?
Yes, your forecasts will show investors that you know your business, that you are likely to succeed, and that you will make wise use of their money. You must have at least a five-year forecast that shows significant profit by year five, significant net income by year two, and that investors will earn approximately 10% return on their investment.
Do Lenders Want to See Forecasts?
Yes, your forecasts will show lenders that you know your business and the you will be able to repay the loan. Be sure you forecast for the entire period of the loan and use conservative financial ratios, because the lenders will. Also, you will need to collateralize and personally guarantee the loan.
The investors and lenders will want to see forecasts of your profit and loss and revenue. They will also want to see what drives income in your industry; for example, sales, distribution, advertising, internet search engines, referrals, location, price, or coupons or other discounts. You also must forecast the revenue cycle for your target customer. How much time will you need to start production, and how quickly will your product or service be accepted in the market?
What Other Forecasts Are Needed?
Another important forecast is the total personnel required to support your desired revenue. If your revenues result from sales, you should start with the desired revenue in year 5. From year 5 subtract 40% from each prior year. On the basis of your research, estimate the number of sales each sales person will make each year. From that you can calculate number of salespeople required.
After you make your forecasts, you should complete a sensitivity analysis by adjusting each major item estimated by 10% plus or minus. Examine the impact on revenues, profit, and cash needs. Remember that most operating expenses are roughly proportional to personnel headcount. These are your variable expenses such as salaries, benefits, employment taxes, furniture, computers, rent, supplies, utilities, training, travel, meals, training, and dues. Other non-variable expenses may or may not be proportional such as professional services, subcontractors, advertising, and trade shows.
Use your forecasts to compare yourself to others in your industry by such things as revenue per employee, revenue per salesperson, gross margin, expense categories as a percentage of revenues, financial ratios, and inventory control. It is critical that you know your industry’s benchmarks and metrics and that your business forecasts are within these benchmarks and metrics. You can find this information by researching your industry.
Should You Hire a Business Consultant to Prepare Your Forecasts and Research Your Industry?
Yes! Unless you have a very strong finance and accounting background, you cannot create financials that will be acceptable to investors and lenders. You cannot do an acceptable business plan with a spreadsheet, and it will be difficult for your to be objective in developing your business model. Also, you are the entrepreneur and your efforts are better spent building and developing your business which is what you do best.
Jo Ann Joy, CEO, Indigo Business Solutions
JoAnnJoy@IndigoBusinessSolutions.net, Phone: (602) 663-7007
The future of your business starts here.
For more information about these and other important topics and for legal consultation, please visit our website at http://IndigoBusinessSolutions.net Copyright 2006. Indigo Business Solutions is a registered trade name.
Mobile Monopoly and BeastMobi are going crazy right now. Why you may ask. Because they are the first real products that tackle a brand new business…mobile marketing. Imagine being able to get involved in the early days of internet marketing. That is right, you would be a multi-millionaire. Now that same opportunity is arising once again in form of cell phone marketing and this program seeks to tackle it.
What does Mobile Monopoly do exactly you may ask? Well it is 10 modules of in depth information about how to market to smartphones across the world. It starts out with very simple instructions and builds up to the end when you are finally considered an expert in the field and ready to start your own campaigns. Adam Horwitz is the creator of Mobile Monopoly and has done a fantastic job making it so even beginners can cash in on this new mobile marketing sector. And if that is not enough, Adam has also stepped it up and actually created his own campaigns that he is going to allow the users of his program to personally use.
Mobile Monopoly is not an ebook like so many other offers out there. Mobile Monopoly has made itself stand out by creating a group or what Adam calls a community of users that help each other be successful. This community also is meant as a way to keep everyone informed of any updates that Adam does. The best thing about Mobile Monopoly is the step by step videos that Adam made. These 10 videos walk the users through each step and make it so you don’t have any hang ups at all.
With BeastMobi, you are given software that does all the hand work for you. It was specifically made for Adam Horwitz and his Mobile Monopoly program. It is an additional cost but the return on investment is huge! Basically, it is another opportunity to make even more money in this growing field.
Now for the bad news, you are not just going to buy this program and get rich quick. It is not called Mobile Monopoly Scam. It is all about working hard and getting out what you put in. That is not to say you are not going to get filthy rich…you just might. But it is going to take dedication and work ethic to get there. I put it this way, it is like owning your own business you run at home. People are not just going to do your work for you…unless you buy BeastMobi and the computer does it for you.
All in all, this program is the best one I have ever had the pleasure of being a part of. The community, BeastMobi, and the videos make it a no lose situation. You will have to work hard to get there, but you have your best chance of ridding yourself of the nine to five life you have been living using this fantastic program.. If you are still not sure, there is a review out there that most people consider the best Mobile Monopoly review on the web that makes a point of writing…you will not get anywhere if you are always afraid to start.
10 of the easiest home based businesses to start in 2009
Working from home is a hot topic today. Not just because of the current economic times, but now the data from the last ten years can be looked at for empirical evidence of success stories. The early pioneers have a strong foot hold and just by their actions have shown others how they can get involved as well. You can also see by various reports that there are 49% of households that have a person or persons working in a non-employed work at home service or business. Is it time you gave it more careful consideration? Here are ten home based businesses that you can start for less than $1000.00 dollars.
Title Searching / Abstracting – This field has had it’s ups and downs but recently in October I discussed ways in other articles about training yourself to be a title searcher.
Basically the art of title searching is based on documenting the important parts to critical documents filed on a piece of property. As the searcher you research public information on current owners to even as far back as 40 years for one particular plot of land. This market should be making a comeback as housing prices settle. The big area for starting work today is providing information on foreclosed pieces of property. Entry into this field can net up to $35,000-$40,000 per year depending on your effort full or part time.
Delivery Service – Do you own an extra vehicle ? Some commercial companies will hire you as an independent delivery driver for getting anything to their clients. I have seen ads for medical equipment to legal documents. Or you can charge by the mile, wait time, load size, etc. if you choose to take independent jobs.
Cab Service / Chauffeur – Again if you have a Bigger size vehicle, Minivan you can get a license and other documents necessary for driving people to and from a destination. There are special considerations if you want to drive minors. I had the idea germinate from the constant on the go nature of my 16 year old daughter and her friends. “Daddy I (should always be we) need a ride.”
Now the license and other qualifications are well worth having the go head to charge money and show proof that you are no physical threat. The cost prohibitive thing was the fuel cost, and as this comes down I am going to consider this an option for the near see able future. It works in my mind as a vehicular just for children with in the age range of 8-14. A service for families that are stressed from work etc and can still have a way to get their children to an activity, party or doctors appointment.
Errand Service – The last of my ideas that will use you own vehicle as more than 50% of the business. Some busy executives are always looking to get plane tickets pickup or shopping done for corporate gifts. My wife actually was inspired to do this because then she can work and make the youngest of our kids part of her day simultaneously.
Notary – I considered this for a mention the licensing fees are over $100.00 dollars when I checked but supplies and licensing together still make it a worthwhile service to provide people in the area or you can also hire your self out with in a certain radius in miles from home. For this once you become a notary you simply need to get clients.
Specialty pastries and cakes – An easy one if you know how to cook, bake or decorate. You have certain health code restrictions depending on if you’ll serve on the premises. I was thinking of really grassroots efforts. You can bake or start a catering business from your home as long as you take it elsewhere and depending on what your making, you might consider a new oven. The reason I include this most efforts to work from home are based on your hobbies and outside the work environment interests. Also working from home does not mean you stay there it is just a base of operations for you to say bake a couple of dozen pastries a cake or two to showcase your talent and going to the nearest farmers market of flea market ans setting up a stand.
Painting / decorating – let’s face it the ones that typically redo the house are also concerned with how the furniture and other items will look against new paint too. If your creative and like to do it all offer a painting company with a twist. As an alternative to doing it all you can provide the base wall coverings such as paint and wall paper. Offer as part of your service some designs sketched out to help owners think about moving furniture around, some simple add ons or even window treatments that accent the new walls. You might be able to add a couple of dollars to the bottom line, but this idea will help you to stand out from the other house painters in the market.
All things Internet – You can work strictly on line to provide an income. From taking part in surveys or other consumer panels (not my first choice). Writing for money can be made from a variety of sources. Associated Content, and other outlets like paid posting firms that want your fresh and original content. There are also a number of E-bayers and store front owners that run their commerce enterprise from a home computer.
The Home Garden – Farmers work from home just by definition. You can depending on the size of yard or space to put a bunch of seed pots together can be a small gardener that supplies farmers markets to rester aunts. Herbs and other leafy plants take up the least amount of space and are easy enough to grow. Tomatoes are big and from home you can grow specialty ones or “heirlooms” as easily as regular store varsities.
Consulting Services – If you have an in depth knowledge or skill set you can consultations to others looking to get a specific answer or problem resolved. Aside from computer skills, you can help with time management, child rearing, financial or other area that individuals are looking for guidance and charge hourly or by the project.
This list is my top ten,it can obviously be bigger. I like service based businesses more than others because you can have a product that most everyone can use, plus it gives you a chance to brand yourself so that you can stand out from others providing the same service.
I think that as we grow as a country and see who really give the economic boost to the entire country we’ll see growth in home based businesses. Even back in 2006 in my home state of Pennsylvanis, Rep. William F. Adolph Jr. of Delaware County has introduced a bill that would minimize restrictions on home-based businesses. The state laws would effectively overrule a number of local ordinances preventing entrepreneurs and others from running businesses from home. Some argue that, subject to the same regulations, companies like Hewlett-Packard and Microsoft could not have been started. Small businesses also argue that, like any other business, they pay taxes and contribute to the economy.
Even surveys by national magazines have brought at least one thing to light: Some home-based businesses are making a lot of money. Entrepreneur magazine estimates that $427 billion is generated each year by home-based businesses. And Money magazine, in a 1996 survey, found that 20 percent of home-based businesses had a yearly gross income of $100,000 to $500,000.