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!!!!

Sean Comb a.k.a Puff Diddy's Meterioric rise to Fame and Fortune

Sean Combs was born on the dangerous streets of Harlem and exposed to violence at an early age, the odds were stacked against Sean Combs, a.k.a. Diddy, from day one. Nobody believed he would amount to much, let alone go on to become one of the most successful and well-known musicians, producers and entrepreneurs of our time. November 4, 1969 was the day Sean John Combs entered the world. Born in Harlem, New York City to Janice and Melvin Combs, Combs’ early life was a far cry from the luxurious existence he has grown accustomed to since. At the age of two, Combs’ life would change forever. His street-hustler father was gunned down, leaving Janice to raise Combs and his sister on her own. Fearful of the increasing danger Harlem posed to her children, Janice moved the family to Mount Vernon, New York. This, she believed, would provide the children a safer environment in which to grow up.

Without the support of her husband, Janice was forced to work three jobs in order to not only provide for her kids, but to be able to also give them the best possible education. Combs attended Mount Vernon Montessori School and later completed his secondary education at the private, Catholic boys’ school Mount Saint Michael Academy. Of his mother’s influence on his life, Combs recalls, “She was constantly pushing. I feel like I was nurtured into wanting to be somebody special.” Were it not for his mother’s strong encouragement and the faith she had in him, Combs’ could have easily followed in the footsteps of his father and suffered the same fate at a young age. Instead, with his mother by his side and a good education in hand, Combs was given a strong character base, from which his future success would later stem.

After graduating from high school, Combs moved to Washington, D.C. to attend Howard University where he pursued a degree in business administration. His attention slowly began to shift from inside the classrooms to outside on the streets. His entrepreneurial instincts started to kick in, and soon he was producing weekly dance parties and also running an airport shuttle service. Combs would never finish his degree. Fortune smiled on him when he was offered an internship at Uptown Records, one of the most popular hip-hop and R&B labels of its time. Recalling his desire to work closely with Uptown founder Andre Harrell, Combs says, “I told him I’d wash cars, quit school – anything – a priceless chance to be in your presence.” At just 19 years old, Combs had been promoted to become one of the label’s top executives, managing such notable acts as Father MC, Mary J. Blige and Heavy D & the Boyz. The very first record that Combs produced, Jodeci’s Come & Talk to Me, sold two million copies and led to Combs’ promotion to vice president. After just two years with Uptown, Combs was fired. “I guess Andre didn't want two kings in the castle,” Combs says of his dismissal. “I had obtained some success, some notoriety, and I didn't realize it wasn't my house.” And so, at the young age of 21, Combs decided to create a company of his own. Today Sean Combs is a fashion and media mogul whose businesses rack in millions of dollars every year. His clothing label Sean John has been extended to fragrances, which are selling like hot cakes worldwide.

In 1993, after being fired from Uptown, Combs established Bad Boy Records, taking new hip-hop artist The Notorious BIG with him. Both The Notorious B.I.G. and Craig Mark quickly released hit singles, followed by similarly successful LPs, particularly B.I.G.'s Ready to Die. Combs began signing more acts to Bad Boy, including Carl Thomas, Faith Evans, 112 and Total, as well as producing for Jodeci, Mary J. Blige, Usher, Lil Kim, TLC, Mariah Carey, Boyz II Men, SWV, Aretha Franklin, and others, and forming The Hitmen, an in-house production team. In 1998, Combs started a clothing line, Sean John. It was nominated for the Council of Fashion Designers of America (CFDA) Award for Menswear Designer of the Year in 2000, and won in 2004. In November 2008, Combs launched his latest men's perfume under the Sean John brand called "I Am King" dedicated to Obama, Muhammad and Martin Luther King. In his blog he stated: "There is a black president and it's time for there to be a black Bond". In November 2008, he unveiled a new Times Square billboard for the "I Am King" line to replace his iconic Sean John ad. The giant billboard is currently the largest print ad in Times Square. Model Bar Refaeli was chosen to be the face of the fragrance.

In addition to his clothing line, Combs owns an upscale restaurant chain called Justin's, named after his son. The current restaurant is in Atlanta; the original New York location closed in September 2007. He is the designer of the green Dallas Mavericks alternate jersey. On September 18, 2007, Combs teamed up with 50 Cent and Jay-Z for the "Forbes I Get Money Billion Dollar Remix. He also made appearances with Jay-Z on his American Gangster concert tour in 2007. As of October 2007, Combs has inked a multi-year deal, in which he'll help develop the Ciroc brand, one of Diageo PLC's super-premium Vodka lines, for a 50-50 share in the profits. The agreement is the latest in which a celebrity is going beyond the typical role of endorser to share in a brand's rise and fall. Diageo said the agreement could be worth more than $100 million for Combs and his company, Sean Combs Enterprises, over the course of the deal, depending on how well the brand performs. Since then, he has launched multiple ventures for Ciroc, many of which were featured during the 2008 presidential election.

Combs acquired the Enyce clothing line from Liz Claiborne for $20 million on October 21, 2008. In a 2008 interview with Albert Lawrence of Talk of Fame, while speaking about his diverse work ethic, Combs claimed that he was "The Black Sinatra".

Homeless But Not Hopeless: Millionaire Chris Gardner’s Early Years

I think most of you have watched the movie ‘The Pursuit of happiness’, it is an astounding yet true rags-to-riches saga of a homeless father who raised and cared for his son on the mean streets of San Francisco and went on to become a crown prince of Wall Street – starring Will Smith. It is one of my best movies to come from Hollywood in recent years. Will Smith did justice to this story, as he managed to bring Chris Gardner’s life story to reality. Here is a brief background about this remarkable man with a never dying spirit, who rose above all obstacles to claim his rightful place in life.

Chris Gardner wears a $10,000 watch on each wrist. On the right hand is a Cartier set to Chicago time, and on the left is a Roger Dubuis set to South African time. “I was late once and it cost me $50,000,” explains Gardner. “I figure it was cheaper to wear two watches.” For a man who not too long ago had only two suits to his name and could not even afford to pay rent, Gardner has come a long way. From living on the streets and bathing in public restrooms to owning a successful multi-million dollar stock brokerage firm, Gardner is living out the American dream.

Born on February 9, 1954 in Milwaukee, Wisconsin, Christopher Gardner’s first few years were filled with nothing but difficulty and uncertainty. He was the only son in a family of twelve children. His single mother was trained as a schoolteacher, but wound up taking on numerous part-time jobs in order to provide for her family. “She was probably her happiest when she was teaching my sisters and me,” recalls Gardner. “She was our professor, our Socrates.” The absence of a father is something that would come to profoundly affect Gardner’s life.

Gardner and his siblings were transferred back and forth between relatives and foster homes. His mother had been imprisoned twice; once, for allegedly receiving welfare while working, and the second time for attempting to burn down the house of Gardner’s abusive stepfather. “I’m sorry she didn’t succeed,” says Gardner of the incident. “Until I went to the U.S. military, the worst violence I ever saw in my life was in my home.”

Gardner was a smart student, but had little interest in academics. He studied trumpet for nine years, wanting to be the next Miles Davis. Eventually, Gardner realized, “I had the attitude, but I didn’t have the talent. Besides, there was only one Miles Davis and he already had that job.”

After dropping out of high school, Gardner lied about his age and joined the U.S. Navy. He had hoped to become a medic and travel the world, but never got any farther than North Carolina. However, the experience did introduce Gardner to a cardiac surgeon, who would later hire Gardner as his clinical research assistant at the University of California Medical Centre in San Francisco after both were discharged. Gardner enjoyed the work, but was only making $7,400 a year and he wanted more.

Gardner toyed with the idea of becoming a doctor, but decided that years of paying off medical loans were not for him. Instead, he became a medical supply salesman, earning $16,000 a year. It was in loading equipment into his car one day that Gardner’s life would forever change. He caught sight of a bright red Ferrari and was immediately in love with it and all that it represented. “I asked the guy two questions,” Gardner recalls. “One was, ‘What do you do?’ The second was, ‘How do you do that?’”

As fate would have it, the driver of the Ferrari was a stockbroker. When Gardner heard that the man was earning over $80,000 a month, he decided that his future lied in investment. He had no education, no experience, and no connections, but that was not about to stop Gardner from achieving his new dream. Culled from evancarmichael.

I hope this article will inspire you to rise above all obstacles to claim your rightful place.

To your success!!!!

Developing A Weath Mindset - Part 2

I am particularly impressed by men and women who defied all odds to reach their goals despite encountering many obstacles in their solemn journey towards financial freedom. There is a saying by William James which says ‘the greatest discovery of my generation is that human beings can alter their lives by altering their attitude of mind’. This saying has been a driving force in my journey towards self liberation from the shackles of poverty. George Bernard Shaw summed it up when he said ‘the greatest of evils and the worst of crimes is poverty…our first duty – a call to which every other consideration should be sacrificed – is not to be poor’.

In continuation of my first article, I want to proceed by cautioning prospective entrepreneurs on the widely held view that to make it in business one needs to have a sound educational background. Yes, it is important to have some form of education. It is important to have knowledge about things, knowledge about the type of business you want to do. There are two type of knowledge, one is general and the other is specialized. General Knowledge, no matter how great in quantity or variety it may be, is of but little use in the accumulation of wealth. Knowledge cannot attract money, unless it is well organized, and intelligently applied through practical plans of action. Lack of understanding of this fact has been the source of confusion to millions of people who falsely believe that ‘knowledge is power ‘. Knowledge is only potential power. It becomes power only when, and if, it is organized into definite plans of action and directed to a definite end.

Remember an educated man is not, necessarily, one who has abundance, of specialized knowledge. An educated man is one who has developed the faculties of his mind that he acquires anything he wants or its equivalent, without violating the rights of others. I hope I have done justice in trying to dispel this notion which has held millions of people captive for centuries. Business or entrepreneurship is all about your vision; history to me is a great teacher, if you look at Bill Gates the founder of Microsoft Corporation, he is a college drop out without any degree, Richard Branson the founder of Virgin Group is also a college drop out. These two men defied all odds and went on to establish what is today two Major Corporations rated in the top 20 Fortune 100 companies.

Developing a wealth mindset is the first step towards developing an entrepreneurial spirit. Earl Nightingale said ‘you become what you consciously think about’, what this tells us is that, whatever, our mind conceives, it will surely come to pass. If our thoughts are always crowded with despair and despondence, there is no way; our thinking can come up with wealth creating strategies. Therefore, mind transformation set should take precedence over anything else in order to align our thinking. Simple steps towards aligning our thinking with our goals takes very minimal effort, it’s all about dreaming and planning….it’s a dream in the sense that you anticipate and visualize yourself in the position or status you intend to be in a given period of time. Personally I visualize myself being a group CEO of my own enterprise. I have already embarked on this dream….it’s not an event but a process. Every time I think about business, Sir Richard Branson keeps popping in my mind. He is not only my role model but somebody who inspires me to thrive and look for opportunities around us. Every Individual can do the same if we are focused and think and live our dreams.

To round off, we need to do soul searching in order to find out what we really love to do. This should be something you are passionate about, your values and your talent. After identifying your values and talents, the next step is to turn these talents into a viable product or service into a commercial entity.

On a parting note Mark Victor Hansen said ‘Poverty is a degrading, dehumanizing, cancer-like disease of the uninformed mind…’

To Your Success!!!