Business Tips

How to Develop a Small Business Plan

Business Insurance Now — Wed, 12 Nov 2008 18:45:10 GMT

An essential part of starting a new business is preparing a small business plan. This effectively summarizes all of the operations and goals of your new organization in a clear, concise manner. Lenders, potential partners, and even the occasional client will want to see your business plan. It’s important to have a well-written business plan on file.

There are seven main parts to an effective business plan.

Executive Summary – a one to two page summary of your business plan.
Company Description – this is where you would put your mission statement and a basic description of what your company is and does.
Product or Service – describe any products and services you will provide and how you intend to do so.
Market Analysis – show why there is a need for your company in the relevant market.
Strategy and Implementation – how will you run your business? Explain how you will secure customers, resources and skilled labor. Then explain how you will implement your company’s goals.
Management Team – who will be in charge? Who will be held responsible? How will accountability and the assignment and completion of duties be managed?
Financial Plan – show and explain all anticipated income sources. How will you generate income and how will you manage expenses. Your financial plan is the most important part of your business plan. Will you be purchasing small business insurance? If yes, what type of business insurance will you need? What other expenses do you anticipate incurring?

For more information on how to develop an effective business plan, or for help starting your new business, visit the Small Business Association Website.

Failing Economy Increases Need for Quality Business Insurance

Business Insurance Now — Mon, 03 Nov 2008 20:18:18 GMT

With all of the problems in the economy right now, major financial institutions are in the news on a daily basis. Insurance companies are facing difficulties as well, and are being pressured to overextend themselves in an unstable market. In an economy such as this one, you want to be confident that you and your money are safe. It is important to select your banks, lenders and insurers with care so that you don't end up in trouble later.

Safeguard Your Company and Your Employees

This is especially true for independent contractors or small businesses that don't necessarily have the reserves that a large corporation would. You depend on these institutions for your business and livelihood and should look for a bank or insurance company's ratings to guarantee that they are a safe, stable and secure place to take your business. If a time came when you needed your employer's liability insurance or workman's comp insurance to pay for a claim, and your lenders and insurance companies were going out of business, you would be stuck paying out of pocket.

Dont Compromise on Quality

Companies like TechInsurance are great because they do the digging for you, and only do business with A+ rated insurance companies. That way you can rest assured you won't be out of luck should something happen and you need to collect on your policy, such as if you have a small business insurance plan and there’s a problem on a consulting contract.

How to prepare a Business Valuation

Business Insurance Now — Fri, 15 Aug 2008 17:40:34 GMT

Generally, a business valuation is used to conclude the financial value of a particular business. Therefore, a business valuation is many times a step in selling off a business to someone else who is interested in purchasing it. However, it can also aid in situations of divorce, estate dispute, and many other business circumstances.

Choose Your Method

There are generally three different ways to conduct a business valuation. These three methods are the Asset method, Market method, and Income method. You’ll want to choose the approach you take to your business valuation according to the situation in which you are using it for.

Here are the three methods explained in order to determine fair market value:

Asset – The asset business valuation will calculate the value of all your assets. This includes all of your real estate, stock, and any equipment that you use. Asset business valuation is generally used for businesses that are not turning a profit, and are ready to liquidate the entire business.
Market – The market business valuation method is one that uses the averages of your industry to determine the fair market value of your company. Commonly, there is a multiplier set by every industry. This multiplier would be multiplied with your revenue, and would set the price of your business.
Income – The income business valuation works by determining the value of your business by its previous earnings. This is many times used by companies that have great intangible assets, because it does not differ between assets that are substantial and insubstantial. Instead, it simply takes into consideration the income of the company and any risk that might be involved with its purchase.

It's advised to hire a professional financial consultant when preparing a business valuation. Business valuations can be extremely complicated, and if prepared wrong, may actually lose money for you. Do plenty of research before creating a business valuation, and decide which method will be best for determining the value of your small business.

5 Essential Small Business Marketing Ideas

Business Insurance Now — Fri, 01 Aug 2008 17:54:54 GMT

It’s no secret that an extensive marketing plan is the bread and butter of any successful business. If you don’t market your product or service to the public, then nobody will know about it. However, almost every type of marketing technique and trick has been used up by the overflowing amount of small businesses out in the world today. Thus, in order to build a successful marketing plan you must develop unique and broad small business marketing ideas. Here are 5 essential small business marketing ideas to compete in today’s dog eat dog world:

Website – Although this isn’t the most unique idea, it is an essential one. With a majority of the world connected to the Internet, a Website is vital to the success of your company. Not having a Site up and running to promote your product or service basically tells people that you don’t take your small business seriously, or that you don’t have a quality product or service. That’s why out of all the small business marketing ideas, this is probably one of the most important ones.

Search Engine Marketing – Once your Website is up and running, it’s important to make its presence known throughout the Internet. Search engine marketing is one way to put your Website toward the top of the list on search engines like Google, and Yahoo. An SEM firm that you hire will take you through a number of different methods and small business marketing ideas to build more traffic to your Site. This may and probably will entail optimizing the content on your Site for certain searchable keywords, sending out press releases via PRWeb, writing articles for distribution, and more.

Social Networking Sites – Though sites like MySpace may seem like a waste of time when it comes to small business marketing ideas, it is exactly the opposite. MySpace has made it feasible to easily reach to potential customers across the globe. Create a profile, search out potential customers, and market away. Use as many different Websites as you can to drive traffic to your specific Website.

Advertisement – Advertising is another obvious way to market your business. However, developing an advertisement that will actually profit your product is another story. With millions of advertisements out in the world, how will your stand out from the rest? Those outside of your business can be very helpful in developing an advertising campaign and other small business marketing ideas. Advertise on the Internet, papers, and other places in your niche market.

Merchandise for Free! – One hit the streets small business marketing idea is free merchandise with your small business logo and Website printed on it. Hand them out in places where your target market might frequent, give them to your clients, and use them shamelessly to promote your small business. T-shirt printing has become a cheap way to do this along with pens, coasters, and other cool merchandise.

How to setup a Small Business 401k plan for your employees

Business Insurance Now — Tue, 29 Jul 2008 18:59:52 GMT

Setting up a small business 401k plan can be an extremely wise investment for the financial security of your employees. Not only does a small business 401k promote a financially stable retirement for all of your employees, but it will also keep valuable employees around and attract other talented personnel as well. In addition, any money that is contributed to the small business 401k may grow a great deal through various stocks, mutual funds, and other smart investments.

Getting Your Small Business 401k Started

To begin setting up a 401k plan for your employees you will initially need to decide whether to do it yourself or use a professional to uphold the plan. Since retirement plans are a very specialized field, it is advised to seek professional help. However, if you plan to do it yourself, here is a list for the initial set up of the small business 401k.

Choose a type of 401k plan – This is the first step to setting up a small business 401k plan for your employees. Three types of plans are available including the traditional, safe harbor, or SIMPLE plan. Make sure to research each one extensively, and choose according to what would be best suited for your business.

The Written Plan – After you’ve chosen the type of small business 401k for your company, you must build a written plan that will dictate the daily operations of the 401k. Often a professional will provide this plan. You are bound to the conditions of the document after it has been written and implemented.

Accounting/Recording Keeping – When you’ve implemented your 401k, you will then need some sort of accounting or recording keeping software to properly keep track of any earnings, losses, investments, and any other financial issues that have to do with the small business 401k.

Tell Your Employees – Finally, you will need to tell your eligible employees about the plan in a summed up version of the entire small business 401k. Provide them with what type of plan it is, and what the benefits are of participating.

Small Business Web Hosting Providers

Business Insurance Now — Fri, 25 Jul 2008 16:38:57 GMT

Having a small business today means having some sort of Website to post your product or service on. Successful small business owners have realized that business on the Internet is just as important as outside avenues. Internet sales are constantly increasing from year to year, and consumers are finding that purchasing via the Internet is many times easier than running out to the store. Groceries, shoes, clothes, and every other product and service you can think of is not sold somewhere on the Internet. Thus, having a Website to promote and sell your product or service means utilizing a Web hosting provider to gain space on a server and broadcast your business across the Internet.

What are Web hosting providers?

A Web hosting provider is essentially a service that will allow you to use their server to post your Website. Once your Website is posted on their server it can be accessed across the Web at any time. The server stores all the data of your Website so that it can remain functional and accessible as much as possible. Having some sort of Web hosting provider is necessary for any business that would like to have a fully functional Website which can be accessed from anywhere.

What to look for with Web hosting providers?

When purchasing a domain name from any one of the many Web hosting providers, you’ll find a variety of different packages to choose from. Look for the price per month according to how much disk space and bandwidth your Website will receive. Estimate how much traffic will be going to the Site, how much data your Site will require, and then make an educated selection. Also look at the email limit, if any, which is put on your account.

Top Web hosting providers

Though there is a huge selection of Web hosting providers out on the Internet today, there are some that get more attention than others. Here are some top Web hosting providers to get you started on the right track:

HostMonster – HostMonster is a very popular Web hosting provider that is $5.95/month, and offers 600 GB of space, with 6,000 GB of bandwidth. It supports a variety of different programming languages, and has unlimited email accounts. This hosting provider is great for large Websites that require a lot of data storage and bandwidth.

StartLogic – StartLogic is another popular Web hosting provider which is actually similar to HostMonster. Here you have the benefit of hosting up to 50 different domains from 1 account, and have a guarantee of 99.9% up time. This is also a great hosting provider for large Websites with a lot of data and bandwidth usage.

GoDaddy – GoDaddy is one of the best, smaller, Web hosting providers. They have a variety of different plans to choose from. This provider is great for the smaller Websites that have content, but don’t require much data backup.

Small Business Help for your Start Up

Business Insurance Now — Wed, 14 May 2008 22:59:07 GMT

Let's face it; starting up a small business isn't the easiest feat to accomplish. Even more difficult is keeping your small business buoyant once you've invested an endless amount of time and money into your venture.

It's been estimated that over 50% of small businesses will fail within the first year.
Over 95% of small businesses will fail within the first 5 years.

These businesses usually fail from poor marketing strategy, or simply not receiving the necessary guidance before starting up. Therefore, it's necessary that you seek out some sort of small business help when starting your venture.

With the right help and research there will be less risk of you missing something vital to the success of your business. There is no shortage of small business help for those that need it. Government agencies such as the SBA are organized specifically to help small businesses succeed. The government isn't the only entity looking out for small business though. Take a peek at some other associations that are looking out for the little guy.

Where to Get Small Business Help?

There are literally hundreds of Websites dedicated to helping you start your small business. Organizations like the SBA, Small Business Administration, have great ideas, and sites like Business.gov will give the rules you need to comply with federal law.

Other great small business help Websites include: allbusiness.com, entrepreneur.com, and fool.com. These Websites will help with financial planning, marketing ideas, business planning, and utilization of various new technologies, management, and human resources. They also usually have a wide variety of useful tips.

Book stores and libraries are another great source of valuable reading material for small business help. In book stores such as Borders and Barnes and Nobles there is always a business section that has a wide array of books on small businesses and topics relating to small businesses. Top books for small business help can also be bought on Amazon.com. Some of these include: The Small Business Owner's Manual, The Big Book of Small Business, and The Small Business Bible. Libraries are another wonderful and free source of information on small business start ups. Check the reference section for a variety of books that may guide you in your venture.

The Small Business Help you Shouldn't Overlook

When starting up a small venture, many small business owners will overlook the basic necessity of insurance. Insurance is vital for the survival of your small business. It can protect your business from a variety of risks that might be able to otherwise put you under. Business Insurance Now not only provides great guidance for the type of insurance that your small business requires, but will provide all the small business help you need. Business Insurance Now is a great company that offers small business help to manage risk with a selection of different insurances. We will assess your particular situation and advise you on the best insurance for your small business.

Small Business Taxes 101

Business Insurance Now — Thu, 10 Apr 2008 18:29:36 GMT

The world of small business taxes is a complicated one. Small business taxes that you pay will largely be determined by what type of business you have, and how many people are included in your business. Therefore, a sole proprietorship would pay a different amount of taxes than LLC, S corporation, or a C corporation. This applies to both Federal and State income taxes.

Federal Small Business Taxes

Federal small business taxes are complex in nature mostly because there are a variety of ways to tax the income of a small business. Here is a quick breakdown of the various types of small businesses and what the pay is in Federal taxes.

Sole Proprietors – Sole proprietors pay both a self-employment tax and income tax at the Federal level. Therefore, they need to fill out a Schedule C and pay 15.3% on all of their net revenue.
Partnership – Partnerships will fill out a Form 1065 and be taxed for both income and self employment.
LLC – LLC’s are a little more complicated. If there are only one or two members in the LLC then it is possible to tax the limited liability company on a sole proprietor or partnership level. However, the LLC can also choose to be taxed as a corporation. Either way, all members of the LLC will pay both self employment tax, which is 15.3%, and income tax.
S Corporation – S corporations are special in that they distribute earnings through their shareholders. Thus, the shareholders will need to pay an income tax on their earnings. However, it is possible to avoid any self-employment taxes when operating under an S-corporation.
C Corporation – C corporations are taxed on any distribution to shareholders, and will pay income tax and need fill out a corporate return form for the IRS.

State Small Business Taxes

State taxes vary as each State has their own regulations. Depending on your business type, and which state your small business resides in, you may pay various rates of income tax.

Additional small business tax resources

How to Develop a Small Business Plan

Business Insurance Now — Tue, 25 Mar 2008 22:29:21 GMT

Drawing up a small business plan is not only important for the organization and development of your company, but also for the purpose of securing some sort of loan from an outside source. Deciding what you will be using your small business plan for is the first step to developing a successful plan that will both arrange and secure profit for your business. Small business plans that are used for developing your business may slightly differ from those that are used for getting a small business loan. Whether you are creating a small business plan for personal use, or for financial purposes, there are some essential pieces that should be included in every business plan.

Administrative Summary

This section of the small business plan should include a short, usually one page summary of the entire business. Any important history of the company should be mentioned here including past profits, and important markers for the company. Start with an overview of the basic approach your business will use. State what your product or service is, and why it will stand above your competitors. Include where your business is currently, what your target market is, projected growth, who the main players in the business are, and what your financial necessities are.

Business Description

Use this section to completely describe all the details of your business. Present your product or service, and how that product or service will be sold and marketed, and who it will be marketed to. Speak about why your business will be successful, and how it will be profitable. Remember that if you're trying to secure a loan, you are trying to convince the lender that they will get their money back.

Marketing Plan

This section will be used to present the entire marketing plan including your niche market, and demand in the economy for your particular product or service. If you have any marketing research from previous years then make sure it is available here. Estimate the amount of the market you intend to take up, and what steps you will be taking to get your business on that level.

Executive Team/Organization

List here who the members of your executive team are, and what responsibilities each will be carrying. Give a biography of each member that includes their background, and why they are important to the team. Include salary rates and organizational structure as well.

Financial Necessity

In this section you should break down in detail what your financial necessities are, and what your projected income is. List all possible expenses on a monthly basis as well as yearly. Show projected profits based on realistic scenarios.

Though these are basic essentials for every small business plan, you should do a good amount of gathering information before first writing your plan. Research who you will be presenting the plan to, and find out what their requirements are.

Small Business Software you can't live without

Business Insurance Now — Mon, 10 Mar 2008 23:00:05 GMT

The market for small business software is enormous. So what is it you really need when it comes to small business software? Here are 5 very helpful tools for your small business.

Software for Accounting – Keeping track of finances is one of the most important aspects for the success of a small business. QuickBooks small business software will keep your finances together and well organized.

Office Suite Small Business Software – Programs like Excel, Access, and Word (Microsoft Office products) will keep your small business organized and compatible with the rest of the world.

Anti-Virus Small Business Software – Unfortunately, the Internet and computers you use for your small business are prone to receiving some sort of virus. Anti-virus software such as Norton or Mcafee is great for protecting against it.

Contact Management Software – This will keep all of your contacts organized so that you can get information quickly and easily. Select one that is easy to use and compatible with other programs.

Email Application – This small business software will keep all of your emails organized, safe, and received the way you want it. Programs like Mozilla's Thunderbird 2 are great and functional.