10 Great Business Ideas

What is one single thing every business must have? A business idea! Without an idea about what to do you can't do anything.
Therefore I have searched near and far in order to try and present 10 great business ideas that just could be the next great thing.
Here comes the list.
1. App development - apps are still the craze. Whether we are talking about Android apps or iPhone apps it doesn't matter really. The potential is great just get there and make the new Angry birds!

2. Online selling - the business is moving to the web, or should I say "into the Cloud" :) Anyway the online shopping is increasing by leaps and bounds. Why not turn your focus on online shop instead of the classic store? The costs are definitively lower, the potential market is bigger, so what are you waiting for?

3. Online booking/travel agency - people like to travel but are usually lazy to walk from door to door in order to get all the information (sort of a paradox). Give it to them all - from the comfort of their couch.

4. Translations - world is getting smaller but still we are not all speaking a same language. Brazil, Russia, India and China are getting stronger and stronger but most of the business is still performed in English. Translations from and to those languages are high in demand!

5. Bike rental - many cities worldwide don't have any kind of bike rental. On the other hand people are more and more environmentally conscious. Let them use a bike for a fee! So instead of buying a bike and worrying whether it gets stolen they just rent it and drive it!

6. Children's clothing - I'm talking handmade. One of my teachers told me long ago - when you start a business make children your target market. People will always buy stuff for their kids. So in order to be different from the mass manufactured items start a small production of handmade kids clothes.

7. Instructions - If you have extensive knowledge in a certain field why not teach people? It is a great and rewarding job.

8. Property management - once again back to traveling. More and more people are looking for apartments they can rent for a couple of days when traveling. Why not organize people who have empty apartments, offer them revenue, and you take care of cleaning and guest, for a fee of course!  

9. Blogging - yes that's exactly what I am doing, blogging. Don't be fooled that it is an easy job. You can make money from blogging but you have to be innovative and interesting and proactive.

10. Farming - no I am not talking about acres and acres of wheat. Find a vegetable (or a fruit) for which there is a demand and it pays good. Also take care how much crops will yield, when and how often. Start small with couple of plants and grow organically (pun intended) as you gain revenue.

That's all folks! Those are my ideas. And just so you don't think that I'm all talk I'll let you in on little secret. Of these ten ideas I am actually working on 4. Trying and believing in success. So there you have. 10 great business ideas you have to try.

Lawyers and attorneys

Yep, when you are running a business sooner or later you will have to cope with some kind of a legal problem. Lawyers will rip you off no matter what side you are on. The one suing somebody or being sued by somebody. Lets face it - it is a fact of life. Now you can try and do your best to avoid such situations but just remember some stupid lawsuits. For instance do you remember the woman who spills coffee on herself and went on to sue McDonalds for millions in damages? And now McDonalds puts a warning sign on every coffee cup so it wouldn't happen again. But who is to say that you won't forget such a small thing and end up getting sued for something similar. On the other side what happens when somebody doesn't pay you for products or services provided to you? You will sue them of course. And once again lose money for lawyers, for court expenses for misses income, for your time etc. You can't escape it you can just take care.
I have a friend who writes about lawyers so for more things on that topic visit his site:  http://accidentlawyerlouisianatruck.org/

TOP 5 Mistakes

Businesses make mistakes. That is a part of everything we do in life in general. We make mistakes. That is true. Many times I have heard the saying: "Smart people learn from their own mistakes, but wise people learn from other people's mistakes". So in accordance with that saying I have found an interesting video that will help you to learn from other people's mistakes and become therefore much wiser.

Running a successful business

When running a business there are some factors you need to have in mind in order to run it successfully.
First of all you have to have a vision. Having a clear vision of what you want your business to be like is a crucial thing. What do you want known for? What do you want to provide to the market? What is your target market? Will you settle for second place or are you going to the top? Try and answer these questions and you will be able to define which way you should take.

Now you have to develop a plan that will fulfill your vision. After defining what your vision is you have to have a plan for it to come true. Many, many people know what they want their business to be but never develop a plan they can follow. Take your time and do it!

Get to know your market. That is one of the most important aspects of running any type of business. You can't cater to everyone, you have to know your target market. If you try to please everybody you will please nobody!

Visibility, visibility, visibility! Focus on your target market. Just knowing what and who it is is not enough. You have to approach your target market and get them to know about you. You can try e-mails, advertisement, newsletters, direct marketing and what not. But you have to make sure people know about you!

If you have more people involved in your business you have to do just that. Involve them! Let you staff know what you are doing, why are you doing it and for whom you are doing it. Encourage them to express their ideas. Sometimes they might have a different perspective on things and that could help you a lot. Also if you want your staff to follow your vision talk to them about it. Let them know what you are trying to do. Make them understand it and see that you need them and that they need you.

It is important to note that running and promoting your business never ends. It is an ongoing process. People usually make a mistake is that they try once and expect instant success. It doesn't work that way. You have to keep on going and keep on pushing forward.

You also have to realize one thing. The most important things. Your business is out there to change peoples lives! Sounds like exaggerating? Well I wasn't talking about changing the world or abolishing world hunger and realizing world peace. Bear with me for a second. Whatever you do, no matter how small or insignificant it might seem, it does influence other people. Whatever product or service you provide people who purchase it from you have their lives changed. For instance if you open a local grocery store and make it part of your vision to always greet customers with a smile and a kind word will make those people feel happier. Isn't that changing lives?

Stock exchange

I have realized that I haven't explain thoroughly to you what the stock exchange is. I found a good article on Wikipedia that actually covers it to the letter. I won't quote the whole article since you can look it up yourself but I will just take the important parts.
A stock exchange is a form of exchange which provides services for stock exchange and traders to trade stocks, bonds and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds.
To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks.
There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities.

Business Plan part 7

12. Refining the Plan
The generic business plan presented above should be modified to suit your specific type of business and the audience for which the plan is written.
For Raising Capital
For Bankers
•    Bankers want assurance of orderly repayment. If you intend using this plan to present to lenders, include:
o    Amount of loan
o    How the funds will be used
o    What this will accomplish—how will it make the business stronger?
o    Requested repayment terms (number of years to repay). You will probably not have much negotiating room on interest rate but may be able to negotiate a longer repayment term, which will help cash flow.
o    Collateral offered, and a list of all existing liens against collateral
For Investors
•    Investors have a different perspective. They are looking for dramatic growth, and they expect to share in the rewards:
o    Funds needed short-term
o    Funds needed in two to five years
o    How the company will use the funds, and what this will accomplish for growth.
o    Estimated return on investment
o    Exit strategy for investors (buyback, sale, or IPO)
o    Percent of ownership that you will give up to investors
o    Milestones or conditions that you will accept
o    Financial reporting to be provided
o    Involvement of investors on the board or in management
For Type of Business
Manufacturing
•    Planned production levels
•    Anticipated levels of direct production costs and indirect (overhead) costs—how do these compare to industry averages (if available)?
•    Prices per product line
•    Gross profit margin, overall and for each product line
•    Production/capacity limits of planned physical plant
•    Production/capacity limits of equipment
•    Purchasing and inventory management procedures
•    New products under development or anticipated to come online after startup
Service Businesses
•    Service businesses sell intangible products. They are usually more flexible than other types of businesses, but they also have higher labor costs and generally very little in fixed assets.
•    What are the key competitive factors in this industry?
•    Your prices
•    Methods used to set prices
•    System of production management
•    Quality control procedures. Standard or accepted industry quality standards.
•    How will you measure labor productivity?
•    Percent of work subcontracted to other firms. Will you make a profit on subcontracting?
•    Credit, payment, and collections policies and procedures
•    Strategy for keeping client base
High Technology Companies
•    Economic outlook for the industry
•    Will the company have information systems in place to manage rapidly changing prices, costs, and markets?
•    Will you be on the cutting edge with your products and services?
•    What is the status of research and development? And what is required to:
o    Bring product/service to market?
o    Keep the company competitive?
•    How does the company:
o    Protect intellectual property?
o    Avoid technological obsolescence?
o    Supply necessary capital?
o    Retain key personnel?
High-tech companies sometimes have to operate for a long time without profits and sometimes even without sales. If this fits your situation, a banker probably will not want to lend to you. Venture capitalists may invest, but your story must be very good. You must do longer-term financial forecasts to show when profit take-off is expected to occur. And your assumptions must be well documented and well argued.
Retail Business
•    Company image
•    Pricing:
o    Explain markup policies.
o    Prices should be profitable, competitive, and in accordance with company image.
•    Inventory:
o    Selection and price should be consistent with company image.
o    Inventory level: Find industry average numbers for annual inventory turnover rate. Multiply your initial inventory investment by the average turnover rate. The result should be at least equal to your projected first year's cost of goods sold. If it is not, you may not have enough budgeted for startup inventory.
•    Customer service policies: These should be competitive and in accord with company image.
•    Location: Does it give the exposure that you need? Is it convenient for customers? Is it consistent with company image?
•    Promotion: Methods used, cost. Does it project a consistent company image?
•    Credit: Do you extend credit to customers? If yes, do you really need to, and do you factor the cost into prices?

Basically in these 7 lessons you have everything you need to know about writing a business plan. Good luck with that!

Business Plan part 6

10. Financial Plan
The financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection (optional), a cash-flow projection, a projected balance sheet, and a break-even calculation. Together they constitute a reasonable estimate of your company's financial future. More important, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.
12-Month Profit and Loss Projection
Many business owners think of the 12-month profit and loss projection as the centerpiece of their plan. This is where you put it all together in numbers and get an idea of what it will take to make a profit and be successful.
Your sales projections will come from a sales forecast in which you forecast sales, cost of goods sold, expenses, and profit month-by-month for one year.
Profit projections should be accompanied by a narrative explaining the major assumptions used to estimate company income and expenses.
Research Notes: Keep careful notes on your research and assumptions, so that you can explain them later if necessary, and also so that you can go back to your sources when it’s time to revise your plan.
Three-Year Profit Projection
The 12-month projection is the heart of your financial plan. The Three-Year Profit projection is for those who want to carry their forecasts beyond the first year.
Of course, keep notes of your key assumptions, especially about things that you expect will change dramatically after the first year.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash flow is the blood. Businesses fail because they cannot pay their bills. Every part of your business plan is important, but none of it means a thing if you run out of cash.
The point of this worksheet is to plan how much you need before startup, for preliminary expenses, operating expenses, and reserves. You should keep updating it and using it afterward. It will enable you to foresee shortages in time to do something about them—perhaps cut expenses, or perhaps negotiate a loan. But foremost, you shouldn’t be taken by surprise.
There is no great trick to preparing it:  The cash-flow projection is just a forward look at your checking account.
For each item, determine when you actually expect to receive cash (for sales) or when you will actually have to write a check (for expense items).
You should track essential operating data, which is not necessarily part of cash flow but allows you to track items that have a heavy impact on cash flow, such as sales and inventory purchases.
You should also track cash outlays prior to opening in a pre-startup column. You should have already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if your projected cash balance ever goes negative, you will need more start-up capital. This plan will also predict just when and how much you will need to borrow.
Explain your major assumptions; especially those that make the cash flow differ from the Profit and Loss Projection. For example, if you make a sale in month one, when do you actually collect the cash? When you buy inventory or materials, do you pay in advance, upon delivery, or much later? How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments, maintenance and repairs, or seasonal inventory buildup that should be budgeted?
Loan payments, equipment purchases, and owner's draws usually do not show on profit and loss statements but definitely do take cash out. Be sure to include them.
And of course, depreciation does not appear in the cash flow at all because you never write a check for it.
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports that any business needs for reporting and financial management.  A balance sheet shows what items of value are held by the company (assets), and what its debts are (liabilities). When liabilities are subtracted from assets, the remainder is owners’ equity.
Use a startup expenses and capitalization spreadsheet as a guide to preparing a balance sheet as of opening day. Then detail how you calculated the account balances on your opening day balance sheet.
Optional:  Some people want to add a projected balance sheet showing the estimated financial position of the company at the end of the first year. This is especially useful when selling your proposal to investors.
Break-Even Analysis
A break-even analysis predicts the sales volume, at a given price, required to recover total costs. In other words, it’s the sales level that is the dividing line between operating at a loss and operating at a profit.
Expressed as a formula, break-even is:
   
Break-Even Sales          =    Fixed Costs
    1- Variable Costs
   

(Where fixed costs are expressed in dollars, but variable costs are expressed as a percent of total sales.)
Include all assumptions upon which your break-even calculation is based.

11. Appendices
Include details and studies used in your business plan; for example:
•    Brochures and advertising materials
•    Industry studies
•    Blueprints and plans
•    Maps and photos of location
•    Magazine or other articles
•    Detailed lists of equipment owned or to be purchased
•    Copies of leases and contracts
•    Letters of support from future customers
•    Any other materials needed to support the assumptions in this plan
•    Market research studies
•    List of assets available as collateral for a loan