Mandatory Start-up Business Pointers

Starting a business is not an easy job. You need to make sure everything is in order and you  %100  prepared for your estimated client base. Lately quite a few people have asked me for advice on the subject so here is how I ready myself for when I was starting off:

Start-up Costs + Monthly Expenses

Start-up costs are normally a one-time cost the amount obviously depends on Imagewhether you are a service provider or a merchant will depend on how high your COGS (cost of goods) will be. Most service providers will have to buy start-up equipment and from there they will use it until it deprecates and needs replacing; since a merchant needs to restock on a regular basics. Calculating your total amount of expenses will help you calculate your total revenue and break-even point. Here is a link that will help you calculate your start-up costs:

http://www.businessknowhow.com/startup/startup.htm

Break-Even Point:

Your break-even point identifies when your company will begin making profit. There are companies who make profit in the first few months where others make profit after their second year. The break-even point tells you when you’re out of debt and solely making profit ex: Let’s say your first year (the start-up year) you invested into equipment or surviving off loans, and paying for your start-up essentials and liabilities; the company ends up with a total cost of $450 000 even though your revenue was $200 000 the total loss will be $250 000 with no profit. Normally businesses will experience a loss in the first year due to all the start-up costs. The break-even point will show your profit (not revenue) after subtracting all your expenses in the second year and losses in the first (which normally occurs after the second year since you’ve already made your start-up investments). Take a look at this example I drew out (pardon my horrendous writing):Image

Keep in mind not every company reaches their break-even point in the second year.  You need to do this calculation until you finally get a gain (seen in the second year). Once you’ve got your gain you can calculate the year you’ll have your break-even point.

Image

You can also calculate the month in which you will make it in which you take the estimated monthly profit and divide 50 000 it by that number. You will get a number that will be between 1 to 12; you will have to match the number with the corresponding month.

Here is a link to help you calculate your break-even point:

http://www.businessknowhow.com/startup/break-even.htm

  Planning For a Business

Everyone needs a plan for their business. You need to know what you’re doing, how you’re going to do it, who is going to want it, and where youroffice will be. Bad planning is one of the leading reasons why businesses tend to fail. There are so many resources that can help you plan your goals and priorities. Here’s yet another link that can aid you in this:
http://www.businessknowhow.com/startup/planningwks.htm

  

Things you need to have before launching:

These items will make your business look more appealing and will help create a higher volume of comprehension to your potential investors. Not only that but it helps toward everything in regards to starting a business. Making everything more clear and organized will help you grow faster and meet your business goals

Save Money Everywhere You Can!

As to whether you have the money or not you should always be looking for ways to save money. There are many ways to do this.

–          Start looking at barter companies that allow you exchange services with other companies you have exchange services and save thousands of dollars. A good company for that is bizXchange

–          Start partnering up with companies that will sell their merchandise cheaper ex: you’re an internet and phone provider so partner up with a phone manufacturer to get a cheaper COGS bill. A great social network for that is PartnerUp or BizAssit

–          Cloud computing is a super economical way to save on storage investments, filing, printing, organization, backup. A great company to go with for that is Kontego Networks Inc

–          Use Social Networks to get your name out there, Network online with other business owners and pitch your product in a genuine way(don’t be a sales person; be a contact). Use: Linkedin, Facebook, Biz Assist, PartnerUp, Youtube, Blogs etc.Image

 

By doing a bit of research you’ll be able to get a lot more information on free marketing and inexpensive ways to exchange. I will eventually blog about it as well. So perhaps subscribe and slowly learn at a reasonable pace.

______________________________________________________________________________

Having your own business is truly an extraordinary change to one’s life style. You are the key decision maker; you are in charge of your success and your business’ success. As for next week’s blog post I’ll make a list of the things that will destroy your business and bring it all down to complete and utter ruins.

Let me know how this blog helped you!

Enjoy the beautiful spring weather!

 

 

Sponsored by: Kontego Networks Inc  The coolest internet provider in Montreal :)

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9 thoughts on “Mandatory Start-up Business Pointers”

  1. Glad I found your blog! I am thinking of a new idea and have been checking out some resources. Trying to also figuire out some creative ways to get up some start up costs which I am sure hampers most start ups. Funny how most blogs and what not are not really telling you anything you do not really know already such as, “Think outside the box” or “Treat your customers great and they will come back.” This is not really stating anything that is not obvious. I like that you are telling of helpful websites that can help.

    Good site!

    1. Hi Steve,
      Thank you for the inspiring comment! I noticed that when I started my business there wasn`t much help from the web so I decided to put all of my schooling and knownledge into a blog to help starting businesses get from point A to B.

      What business ideas do you have in mind? I`m guessing something related to surfing. :P
      If you have any personal questions to ask me feel free to email me at katiesinare@ hotmail.com

      Once again thanks for reading and looking forward to your reply!
      Have a great evening.

      Katie

  2. Good guess!

    I will send you some details about what it is soon. Maybe from just a plain business stand point, you might have some ideas. Sometimes a pair of eyes from a different perspective can help out.

  3. Hi Katie,

    I, too, am involved in a company startup. We will be bringing a new industry to the world as we know it, a new classification of energy production: magnetics. Our device will be non-dependent, relying only on permanent magnets. Set it out in the desert, give it an initial spin, and enjoy energy for as long as you, possibly your grand kids also, live.

    While our engineer is developing the prototype in Indiana, I, in Arizona, am responsible for the business plan, shop layout, employee assignments, and will assist in the shop setup. We have a 3rd owner, also in Arizona (but 2 hours travel from me), who will take charge in legal issues and marketing.

    We’ve been at it since mid December, 2011, and I am now about 2/3 finished with the business plan, predicting our first units to be available to the public in September of this year.

    Our website (also ref in name): http://fuelandenergysavingsproducts.com/

  4. Hello there, just became aware of your blog through Google, and found that it is really informative.
    I am gonna watch out for brussels. I will be grateful if you continue this in future.
    A lot of people will be benefited from your writing.
    Cheers!

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