Business Start Up – Basic Steps Before You Can Even Open Shop

The facts are that most new business endeavors fail in the first year or two due to poor planning and poor financial support. There are some very important steps to consider when starting a new business and that is what this article is all about – the major steps that one must follow, consider, then implement BEFORE OPENING DAY in order that the business can thrive and be profitable.

If your idea of a new business is to have a Sno Cone store located on the beach in central Maine, then you will have major obstacles to overcome, not unlike selling ice cream to Eskimos in the winter time. Sure, you will be busy for a month or two each year, but is the business able to be sustained, i.e. remain profitable on a year round basis? Likely not. Your new business needs to be an idea that makes sense, or is something you have been trained to do. I was personally trained to be a dentist and later a real estate agent. Both careers made sense in the busy Washington, DC, metro area. My current consideration is in the restaurant business – an idea that makes sense because of the next step in this article. So first and foremost, your idea for your new business has to be logical. This is where step 2 comes in.

The first three rules of real estate are: Location, Location, Location. You have heard these words a million times over, and they are true now more than ever. There is NO POINT in putting that dry cleaning shop next to a smelly meat rendering plant, or next to a cigar shop, or worse yet, next to three other dry cleaners that are already well established (i.e. the area is saturated) One of the most logical things to do at this point is to run a demographic analysis to see if your business idea might fit into the physical location you have in mind. If you are a dentist, for example, you would want to know the population of your area, how many other dentists are right nearby, is the population always moving? (transient types), are they able to afford your expensive fees when a dentist down the street charges half?, are the possible patients commuting to work and would prefer a dentist in town perhaps?, what insurances are in that community? ( this a suburb of Washington DC so we know Delta dental dominates?), how many children are in the community (you would not want to specialize in children’s dentistry when the demographics show 90% of the people are over 50 years old).

In all my years as a dentist, real estate investor, and business consultant, I have seen very few business plans and I’m not sure why. They are really not that hard to do if you have a good business model/concept in mind. There are plenty of books out there to help guide you. If you have the money, you can hire a good consultant to help you write one. Basically – create an outline of what you intend to do, the costs involved in getting the business started, the costs to keep it going, how many employees you need, what you will pay them, insurance costs – life, health, disability, business overhead, etc, legal costs, accounting costs, and the list goes on and on. The idea here is to create a plan that says you know what you are doing here, you know what you are up against. So make sure to write up a good plan because the next step is where you will put that plan to good use.

Unless you are wealthy enough to pay cash for this new business, you will need some degree of financing to make it happen. This is where that business plan will come in handy. With my own clients, whether they have been in business 20 years or are just starting out, I tell them to create a plan that explains where they want to go and map out the first few years so you can see how things are progressing. Then, you can show this plan to your local bank to get the financing you need to get the new restaurant open on time. I guarantee a good business plan will greatly increase your chances of getting the money you need. In addition – you must plan for a reserve fund. This is critical for a new business. Your first months, perhaps your first years, may be a bit lean and you will need money in the bank. What happens if we have a snowstorm that shuts the area down for two weeks and you have not had a single customer in that time? Well, payroll, rent, debt service, etc. are all still due. You don’t get a break on the bills just because it snowed. This is why you MUST have a reserve fund, or a LOC (Line of Credit) ready. For my own clients, we set up a special LOC since it costs nothing to just sit there, but if there was a broken down pizza oven that needed replacement right away, the money is ready. This is a good segue to understanding types of costs each business must face.

Fixed Costs – these are costs that are always there until the day you close the business and likely they will go up every year you own the business. These costs include things like rent, debt service, insurance, condo fees, cleaning and maintenance fees, and staff salaries. These costs will always be there, staring at you every month like a hungry baby bird with it’s mouth wide open! So as I explain to my clients – if you have a small business, most likely you will have to be there most of the days it is open to make sure things run smoothly and properly.

Variable costs – supplies, maintenance needed due to being busy, staff bonuses, legal fees, marketing costs, and finally your own salary/pay/profit. So, this means that you do not get paid unless EVERYBODY else gets paid first.

Is your business going to be as a sole proprietor or a corporation? The difference is that a sole proprietor is personally liable for all actions in the business, and pays for all problems that might occur on a personal level, i.e. if someone breaks their ankle at your doorstep, they can not only sue the business, but they can sue you personally as well. So you say – that’s pretty stupid, isn’t it? Well, I just met a businessman recently who has been in business for over 20 years, he makes over $200,000 personally and is a sole proprietor. He has a beautiful home with a wife and kids……he could lose all of this if something as common as a broken leg happened at his doorstep. If he was to set up as a corporation, his corporate insurance with an umbrella policy would likely cover any accidents and he would not be held personally responsible and risk losing all that he has worked for. There are different types of corporations out there, depending on what type of business you are running. The best thing to do is hire an attorney who can set up your entity properly and maintain it for you.

The issues mentioned above are what I try to tell all new clients to consider (just for starters) before they even consider opening the new business. These concepts need to be reviewed and reconsidered carefully, with the understanding that maybe you should not open that business in that location. Maybe a whole new demographic analysis needs to be done in a different area. You might be pretty disappointed at first when your pizza restaurant does not fit into the community where you live and you would need to move it 20 miles further out to make sure you have customers. This is the way a business is, this is the way you have to think of a business. In the end, it’s just a business!

Next Article: Are we there yet, can we open shop?

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The Best Credit Card Debt Reduction Tips – Legal Options For Personal Debt Relief

Credit card debt has the advantage of being easy to get and quite user friendly. You just go and apply for a credit card and if you meet the few necessary requirements, you will have it in a week. Now you can use it to buy things and there is no need to worry about money until the end of the month when it is time to pay back what amount you borrowed. After the recession hit, it became difficult for consumers to meet their deadline and within not time their debt were way too big to be paid off with ease. Now it is when you need help; and what better help than a good debt relief option?

Legal options for debt relief are quite a few and if you put them all together you can see that they are very flexible. Although some are used by different consumers with a certain amount of debt, as a whole, debt relief option can help any consumer with debt or one who hasn’t even build up debt. When looking for these legal options, you should know what you are doing and so it is best to follow some easy tips.

1) First you need to know for what option you should be looking for. This is done after a debt consult or after getting information about all of them and comparing them with your financial problems. Although some other option might also be of assistance, it is possible that you don’t get all the maximum benefit. Don’t take this decision with ease because it is quite important.

2) After you have selected which option is best for you it is time to see if you need to hire a company and where to find one. Usually a good company can be found online but if don’t know what to look for you might select a fake one that always looks good but the effects are disastrous.

3) After you hired a legitimate company and you have used its services it is time to relax for the first time in a while. Paying back your debt will be now much easier and you can take a few seconds to

Credit Card Bankruptcy Tips – Legally Settle Bad Credit Debt Without Bankruptcy – Part 1

Certainly these days every credit card debtors is seeking for credit card bankruptcy tips so that he or she could avoid negative consequences of possible bankruptcy. Credit card bankruptcy tips enables debtors to confront with their bad credit situation successfully by discharging their liabilities as per their own financial capabilities irrespective of the fact that they are weak and unable to bear their existing unsecured liabilities.

There are numerous beneficial ways through which debtors can legally settle their bad credit debt without bankruptcy, among which the most widely used option is debt settlement. This program is highly effective and beneficial for those credit card debtors who are suffering from their financial inability of discharging their massive unsecured liabilities and finding no ways to discharge their financial obligations with their intensely weak financial situation.

Debt negotiation program enables debtors to get massive elimination in their massive liabilities. This elimination will be legal and aim to enable debtors to repay their reduced debt as it has now reached at very affordable level. Through massive reduction in debt, debtors can easily repay it. It is important to know that this massive reduction actually results from successful negotiation with creditors because you have to realize your creditors about your unstable financial situation and inability of such massive loan repayment.

In order to realize and negotiate with creditors, you are required to hire most competent and specialized debt settlement company. Debt settlement companies are also known as debt negotiation companies provide their legitimate services against charging you up-front fees. Their efficiency and higher order skills play very significant role in getting maximum reduction in your unsecured debt. These credit card bankruptcy tips especially about above mentioned debt relief program are quite helpful to avoid bankruptcy.

Credit card bankruptcy tips are also providing or suggesting you most beneficial and affordable ways to discharge your financial obligations and restore stability in your financial matters. There is no doubt that once you get rid of your debt, you will certainly move towards your credit free happy life.


Debt Negotiation Tips – Legal Options to Avoid Paying Back Credit Card Debt

There is a right way and a wrong way to accomplish a task. Similarly, there are legitimate and illegitimate ways of attaining liability relief. If you are disturbed because you have not paid your unsecured bill, you are not the only one falling in this category. Millions of Americans are facing the same problem. There are several legal organizations providing effective debt negotiation tips. You can search online for these companies. Liability settlement is one of the key ways to settle credit card dues. You have to hire a firm which represents you and talks to your creditor. At times, more than one negotiation session is held to extract a result which is suitable for both sides.

1. Do you know that your payable amount increases by more than hundred percent due to interest payments? One of the important debt negotiation tips is to apply for the elimination of these costs. This is the first move which is made by an expert consultant. He applies for the exemption of interest charges. In this way, his client has to pay a much smaller sum to the bank. However, these charges are not exempted if you sign an internal agreement with the money granting firm.

2. Bulk consolidation companies claim to provide the most helpful debt negotiation tips. Bulk consolidation is a legitimate option but most companies providing it are counterfeiters. They extract payments from a lot of loan takers and then vanish.

3. Debt consolidation is one of the legal options. How does this option work and why do loan takers prefer it? Liability consolidation refers to the combination of liabilities. This alternative is only applicable if you are using more than one liability. This may be a combination of both secured and unsecured ones. According to some debt negotiation tips, you cannot go for consolidation if you have only one liability on your head.

How do you search for the right debt negotiation tips? This is a very important question. It is obvious that most of us search online for this purpose. However, an endless collection of content is available on the internet and it is not possible for a loan taker to scan through it.

You can look for some helpful social portals. Different loan takers discuss the best debt negotiation tips through these communities. Apart from that, you can hire a private counselor for this purpose.