How to Raise Initial Investment Capital for Small Businesses

Sources of Initial Investment Capital. Raising initial investment capital for new businesses is challenging. But if you are creative enough, raising your investment capital will not be that difficult. Knowing how to secure initial investment capital is crucial to making your dreamed business a reality. Now how to conceive a good business idea is not a problem to you. It is even possible that you have prepared your business plan and everything is pointing to the direction of a good success. But it can be very frustrating when it comes to raising of the initial investment capital needed to kick Continue ReadingHow to Raise Initial Investment Capital for Small Businesses

Developing A Marketing Strategy For Small Business

If You Have A Marketing Strategy in Place, Selling Becomes An Easy Task. Having a marketing strategy will play a crucial role in the success of any product or service. No matter your innovation or the ingenuity of your offering, if customers do not get to know about it, there is no way it will sell.  “Doing business without advertising is like winking at a girl in the dark.  You know what you are doing, but nobody else does”, said Stuart Henderson Britt. Marketing is all about putting the right product in the right place, at the right price, at the right Continue ReadingDeveloping A Marketing Strategy For Small Business

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

How to Increase Sales Without Extra Marketing Costs

You don’t need to break the bank in order to increase sales. Before I continue, I like to quickly mention that it is not enough to increase sales, each sales increase should also increase your profits. That is why small business should be very creative when it comes to marketing. As important as marketing is to every business, small businesses don’t have much funds to invest in it. This makes it difficult or impossible for them to compete with large companies. Large corporations can afford to spend thousands of dollars for the promotion of their products. But a small business that Continue ReadingHow to Increase Sales Without Extra Marketing Costs