Understanding Margin of Safety in Business Plan

Margin of Safety is a term every small business owner must learn and understand. Margin of safety(MOS) is the amount by which your budgeted or actual revenue has to drop before you reach your breakeven point. In the other word, it is the excess of budgeted or actual sales over the break even sales figure. To calculate Margin of Safety, you will subtract the breakeven sales from the actual sales or budgeted sales. It depends on the figure you are working with. Then you divide the result by the actual sales or budgeted sales.  That is: Margin of Safety  =  Continue ReadingUnderstanding Margin of Safety in Business Plan

Factors Affecting Choice of Legal Structure of Your Business

Your business should be set up based on the legal structure that is most appropriate. There are some factors which you may consider before you settle for any particular business legal structure. The reason for putting the factors into consideration is that, once you choose your legal structure, it will cost you time and money to change it. So, you should not take this lightly. The factors to be considered include the following: Capital What is the capital requirement for your business? Can you start your business with just a little capital or it is going to be capital intensive? Continue ReadingFactors Affecting Choice of Legal Structure of Your Business

The Hidden Benefits of Not Having Sufficient Capital

Insufficient capital can be advantageous. Every entrepreneur needs capital to start, run and grow his business. Without capital, a lot of things can be hampered. However, at times, lack of sufficient capital can be a blessing in disguise. In every dark cloud, there is a silver lining. If you think that not having sufficient capital is a curse, you’ve got to read this article. I just need to write this article to motivate some people there who thought that capital is their major obstacle stopping them from starting their business. A lot of ideas have died just because of this Continue ReadingThe Hidden Benefits of Not Having Sufficient Capital

Open Letter to All Employees

Dear Employee, I congratulate you on your new job. Whether you just got a new job or you have been working for some time, this letter is for you. You will agree with me that you are probably not the only person that applied for the job. By one reason or the other, you are successful in the interview processes and you are selected as the preferred candidate. It doesn’t matter whether this is your dream job or you just want to use the job as a spring board which may likely land you on your dream job. For now, Continue ReadingOpen Letter to All Employees

Checklist for Starting a Company

Things to Do Before Starting a Company. Starting a company is the dream of many. If you are reading this article, I believe that you are among the people that are considering starting a company either now or in the near future. This desire is laudable indeed but you don’t need to rush into it. If you rush into starting a company, you may soon discover that you did not do your homework properly. Starting a company requires that you do some ground work that will help you lay a good foundation for your company.  Therefore, if you are thinking Continue ReadingChecklist for Starting a Company