Any business needs three basic things to get it off the ground: finance, ambition and a good plan of action. Ambition is what keeps you at it when you encounter obstacles, and a good plan would help you apply for financial aid. Business financing is critical to the success of a fledgling business, yet most people pay only superficial attention to it.
Three Things You Should Keep In Mind About Finance
How much? When you are launching your business, the projected amount usually includes the initial operational costs until the break-even time. What most people tend to neglect is that until that time, you need to support yourself as well. The gap unless carefully addressed, would eat into your capital (meant for your business) and you end up with shortage of funds. This is further aggravated by the fact that your business has not yet reached its break-even point, which would further condemn it to failure. This is why when you calculate the projected amount you need to add to it your sustenance costs well past the breakeven point. You should not depend upon the earnings from your business until it provides a reasonable profit.
How? The first thing that comes to your mind when you think of ways to raise finance is banks. However, that should be your last resort. Many business fail because the profits are buried in the repayments of loans availed for capital funds. Try to launch your business in baby steps, using whatever money you have saved as the initial investment. Expand gradually with the profits gained. In this way, you learn strict financial discipline and avoid the pressure of loans at the same time.
When? "This is easy", you would say. "Of course, in the planning stage". You will be surprised to learn that this is one of the most popular myths today. You should try your best to launch your business based on your own funds. Apply for loans only after you are satisfied that the business is on track and gives you reasonable returns. In this way, you would need less effort to sell yourself to your bankers, and have better chances of steering your business towards success.
Business financing is all about these three factors. You pay attention to these, and everything else will fall into place.
Three Things You Should Keep In Mind About Finance
How much? When you are launching your business, the projected amount usually includes the initial operational costs until the break-even time. What most people tend to neglect is that until that time, you need to support yourself as well. The gap unless carefully addressed, would eat into your capital (meant for your business) and you end up with shortage of funds. This is further aggravated by the fact that your business has not yet reached its break-even point, which would further condemn it to failure. This is why when you calculate the projected amount you need to add to it your sustenance costs well past the breakeven point. You should not depend upon the earnings from your business until it provides a reasonable profit.
How? The first thing that comes to your mind when you think of ways to raise finance is banks. However, that should be your last resort. Many business fail because the profits are buried in the repayments of loans availed for capital funds. Try to launch your business in baby steps, using whatever money you have saved as the initial investment. Expand gradually with the profits gained. In this way, you learn strict financial discipline and avoid the pressure of loans at the same time.
When? "This is easy", you would say. "Of course, in the planning stage". You will be surprised to learn that this is one of the most popular myths today. You should try your best to launch your business based on your own funds. Apply for loans only after you are satisfied that the business is on track and gives you reasonable returns. In this way, you would need less effort to sell yourself to your bankers, and have better chances of steering your business towards success.
Business financing is all about these three factors. You pay attention to these, and everything else will fall into place.
Those who now struggle to create or increase demand for whatever they offer (products, services, or a combination of both) must be able to answer three basic questions. All are important but the first two are much less important than is the third:
1. Who are you?
2. What do you do?
3. Why should I care?
Seth Godin is one of the most thought-provoking business authors whose insights (especially those provided in Small Is the New Big) can provide substantial assistance to answering the aforementioned questions.
"If your target audience isn't listening, it's not their fault, it's yours." (Page 14)
"What makes you remarkable is being amazing, outstanding, surprising, elegant and noteworthy."
(Page 112)
People who think like a pigeon "assume a cause-and-effect relationship that doesn't really exist. That's what a superstition is: a compulsion to take an action that has no actual influence on the desired outcome." (Page 163)
Enjoy !
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This is an amazing book where you rediscovered the fact that life is short and not doing what you love is a waste of precious time.
That being said not all jobs are rewarding or satisfying, but the energy and your self expression you bring to that job makes all the difference in the world.
The ideas presented in this book are definitely not your traditional ones around the work place. Here Tim Ferris presents a whole new reality of what the work place can and has become for many people. One of discovering ways to work less hours, make more money and spent more time in activities outside of your workplace you like to do, ie traveling.
You could say it's all about how you spend your time...quality vs quantity.
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