Writing an Effective Business plan (Part 1)

Wikipedia defines entrepreneurship as the practice of starting a new organization or revitalizing existing organizations, particularly new businesses generally in response to identified opportunities. The best reason to start an organization is to make sure the venture serves a purpose and addresses a need that alleviates and elevates the living standards of mankind. The desire to bring about change and make a difference in people’s lives should be the driving force for an entrepreneurial venture to succeed. Money should not be the main motivator; it should be a conduit upon which the entrepreneurial dream will sail through to fruition. You need to be passionate about the type of business you are planning to venture into.

It has been said countless times that for one to succeed in business, you have to venture in a business you are passionate about. Your passion could be a hobby like writing or antique collection which you can turn into a business venture. However, the basic steps must be followed; you need to check if there is a need for this type of service before you even think of turning your passion into a business. This goes back to my earlier assertion that every business idea must be able to make a difference in people’s lives. There must be a problem in the target market you wish to enter, and your business should be able to provide a satisfactory solution to the identified problem which in this case is the business opportunity.

Every business idea must be written and a plan of action must be put in place on how you intend to transform the idea into a business. When Sam Walton started Wal-mart, which is today the world’s biggest supermarket chain employing more than three million people worldwide, he had a vision which he transformed into a business entity. He documented every step of action he was going to follow to realize his dream. Hence, in order to ensure your vision is well presented and well spelt out, there is need to write a business plan.

A business plan is your road map; it clearly shows you where you want to go and how you will get there. It is a document spelling out your strategic vision and how you intend to achieve it. Writing a business plan is very easy if you know exactly what you want to do. There are basic steps you need to follow in terms of logical flow, which will make execution easy to implement. I will list the main topics which are usually covered in a business plan below.

1) Objectives

2) Mission

3) Your Keys to success

4) The company

5) What will you be selling

6) The Market

7) Your type of business

8) Sales forecast

9) Marketing Plan

10) Management Team

11) Financial Plan

I will explain in detail elements which will be covered in each of the above topics in my post tomorrow. However, I will conclude by explaining the first topic which is your business objectives. Your business objectives must be specific goals that are measurable. When you measure your progress, you stay on track, reach your target dates, and experience the exhilaration of achievement that spurs you on to continued effort required to reach your goal. To determine if your goal is measurable, ask questions such as......How much? How many? How will I know when it is accomplished? Keep the list to three or four goals as it is difficult to focus on a long list of objectives. Your chance of implementing these goals depends on your ability to track progress and measure the outcome.

For instance, if image and awareness of your business is a priority, you need to do a customer survey to get what your target market thinks about the industry and its main players. This way you will have enough arsenal to use for your market entry. The bottom line is you need to set S.M.A.R.T goals. I will explain in detail how you can go about setting smart goals in the next post. Your comments are welcome on this post.

To your success!!!!

Investment strategies for Entrepreneurs

In order to succeed as an entrepreneur, you need to understand and appreciate the essence of saving money. Money is a commodity which makes our lives easy and brings a lot of comfort in our life. Money is a commodity which you need to employ to make more money for you. But how do you do this?. You can do this by investing your money wisely.

Investing is not a sure thing in most cases, it is much like a game of cards – you don’t know the outcome until the game is concluded and a winner is declared. Anytime you play any type of game, you have a strategy in mind on how you can win that game.

Investing isn’t any different – you need an investment strategy in order to safely navigate the mucky waters. An investment strategy is basically a plan for investing your money in various types of investments that will help you meet your financial goals in a given time. Each type of investment contains individual investments that you must choose from. The stock market is a type of investment, with different types of stocks, which are held by different companies in different sectors of the economy. If you haven’t done your research, it can quickly become very confusing – simply because there are so many different types of investments and individual investments to choose from. This is where your strategy, combined with your risk tolerance and investment style all come into play.

If you are new to investments, work closely with a financial planner before making any investments. They will help you develop an investment strategy that will not only fall within the bounds of your risk tolerance and your investment style, but will also help you achieve your financial goals. Never invest money without having a goal and a strategy for reaching that goal! This is essential. Nobody hands their money over to anyone without knowing what that money is being used for and when they will get it back! If you don’t have a goal, a plan, or a strategy, that is essentially what you are doing! Always start with a goal and a strategy for reaching that goal!

Different Types of Investments

There are three different kinds of investments. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, each type of investment has numerous types of investments that fall under it. There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing in stocks. There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk.

Depending on your risk averseness, if for instance you are a conservative investor your best bet will be investing in cash. This means that you can put your money in interest bearing savings accounts, money market accounts, mutual funds, Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments. If you are a Moderate investor you could invest in both cash, bonds and you may also dabble in the stock market. You can also invest in real estate, providing that it is low risk real estate. If you are an aggressive investor you can invest in the stock market, which is higher risk. You can also invest in business ventures as well as higher risk real estate.

Caution: Before you start investing, it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and investors know this first hand!. You can borrow a leaf from Warren Buffet, the world’s number one investor who has defied all odds and consistently reaps big on the stock market. I would appreciate your comments on this article. Suggestions and contributions on other investment vehicles will be greatly appreciated.

First ten people to comment and make contribution to this post will receive my free eBook titled ‘Real Estate Investment Secrets.

To your successful investing!!!!!

Investing Mistakes to Avoid

As a follow up to my article 'investing basics', today i would like to share with you pitfalls you should avoid in your investment journey. Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you are to be a successful investor. For instance, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your money work for you – even if all you can spare is $20 a week to invest!

While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another big mistake. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.

Don’t invest to get rich quick. That is the riskiest type of investing that there is, and you will more than likely lose. If it was easy, everyone would be doing it! Instead, invest for the long term, and have the patience to weather the storms and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.

Don’t put all of your eggs into one basket. Scatter it around various types of investments for the best returns. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow – don’t panic if the stock drops a few dollars. If the stock is a stable stock, it will go back up.

A common mistake that a lot of people make is thinking that their investments in collectibles will really pay off. Again, if this were true, everyone would do it. Don’t count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead.

To your sucess!!!!

Investing Basics

Today i will be covering a topic a lot of people profess to be experts in. However, nomatter how sound you may be, the language of money is a completely different subject which needs constant tapping in order to fully comprehend it.

When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing – there is the risk of losing your money!

Before you jump right in, it is better to not only find out more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you be funding a college education? Buying a home? Retiring? Before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is will help you make smarter investment decisions along the way!

Too often, people invest money with dreams of becoming rich overnight. This is possible – but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest your money in such a way that it will grow slowly over time, and be used for retirement or a child’s education. However, if your investment goal is to get rich quick, you should learn as much about high-yield, short term investing as you possibly can before you invest.

You should strongly consider talking to a financial planner before making any investments. Your financial planner can help you determine what type of investing you must do to reach the financial goals that you have set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals.

Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.

To your success!!!!