Govind Prashanth Ketty is the owner of OnlineBizMachine.com and writes on a variety of subjects. To learn more about this topic and start your own Online Business Govind recommends you visit: http://www.OnlineBizMachine.com
Every business must have its own business plan if it is to succeed. If it doesn’t, the business in question will become convoluted and run aimlessly to a point where profit is undetermined because business owners won’t know where they should be. This is why a specific business plan is so important to devise at the onset of starting a business: What do entrepreneurs plan on doing with their business? In which direction is the business intended to go, how and why? What kind of timetable is necessary to meet these and other objectives? All these questions and more should be answerable and answered before anyone plans on starting a business. The more specific the plan, the better.
The business plan is synonymous with a road map. This map illstrates points allong a given route to a set of desired or necessary destinations over a particular period of time.
Timeline of the map can ensure that business owners have direction along each step of the way, through each point, until goals and objectives are met.
Sometimes, however, unforeseen circumstances set in and adjustments have to be made to that business plan to prevent the business from crashing. This consideration is is more common to occur than not. In this case, establishing a set of possibly variable points and/or destinations is preferable to having only one to allow for flexibility. When one or more paths become obstructed, the business has another pre-established path to follow to get to other desired or alternate map points and/or destinations. The more flexible the map is, the easier it is to navigate and maneuver. Many business plans are sketched out from six months to over ten years, sometimes twenty or fifty.
Many hazards, such as the tragey of 9/11, require changing business plans drastically to accommodate loss incurred by the said tragedy. This will likely include the economic aspects of the business as well, not just human resources or physical means. A new starting point and possible path lines must be established, along with viable destinations.
It goes without saying that business plans are likely to be altered during the process. This is because, as businesses grow, perspectives change, as do values and direction. Such a circumstance isn’t only expected, it’s encouraged, because expansion is an important part of company growth necessary to accommodate the inclusion of other things as time goes on. Flexible business plans make this all possible and easy to achieve.
Anyone who is serious about starting a business should have a clear and specific object in mind and a stage-by-stage process regarding how to get there. Further, knowing how to effectively sketch this process out on paper will ensure that the company stays on track from beginning to end.
Govind Prashanth Ketty is the owner of OnlineBizMachine.com and writes on a variety of subjects. To learn more about this topic and start your own Online Business Govind recommends you visit: http://www.OnlineBizMachine.com
Saturday, November 3, 2007
Thursday, November 1, 2007
Debt Of A Business
Govind Prashanth Ketty is the owner of OnlineBizMachine.com and writes on a variety of subjects. To learn more about this topic and start your own Online Business Govind recommends you visit: http://www.OnlineBizMachine.com
One of the largest stumbling blocks you will encounter when starting a new business or upgrading your company is getting a bank loan. A lot of people have no idea how to start to apply for a loan. The quickest way to get turned down for a loan is to go into the bank with no documentation. A banker needs to have documentation for the dollar amount that you are requesting. They will also want a detailed report of why you feel that you need that amount.
The banker will also request for a projection of when the loan can realistically be paid back. They will want to know how often you will make payments. Should you decide on monthly payments, the bank will then want to know the amount of that payment. If the loan is of considerable amount, the banker will need to know what you plan to use as collateral. A company’s assets are normally used as collateral. Real estate, however, is the biggest asset used as collateral.
A financial history for your company will need to be submitted. This includes balance sheets, profit and loss statements. If your company is already established you will need to have up to three years worth of these documents. Should you just be starting this business, a very detailed business plan needs to be provided to the bank.
Projected profits and projected cost flow for the next year will need to be done on a month to month basis. All projected money coming into the company should be detailed out for the banker. All expenditures, from supplies to salaries, also need to be in a detailed form.
The banker will want a detailed report of where you envision your business each year for the next three to five years. Included with this should be all expansion ideas for employees, locations, products, etc. The bank will need to know the plans for the company’s future and the direction that you want the company to head in the future.
Other information the bank will want to know will be the business experience that you have or have had. You need to tell them about any degrees or certificates you have. They will also want to know how long you have worked in the industry.
If you don’t get your loan, let the lenders know that their rejection doesn’t discourage you. You should portray confidence and determination. You need to try several lenders until you receive the money you need. Be confident and proud of your venture into the business world. You should let the lenders know that you are in control and you know what is best for you and your business. Ask the bankers why you did not get the loan. Take that answer, learn from it and then move on and try other lenders.
As a business owner, the most difficult task is finding the money to operate your business. Take the necessary steps to minimize difficulties when preparing for a business loan. The most important task when getting ready to apply for a loan is to prepare a very detailed business plan.
Govind Prashanth Ketty is the owner of OnlineBizMachine.com and writes on a variety of subjects. To learn more about this topic and start your own Online Business Govind recommends you visit: http://www.OnlineBizMachine.com
One of the largest stumbling blocks you will encounter when starting a new business or upgrading your company is getting a bank loan. A lot of people have no idea how to start to apply for a loan. The quickest way to get turned down for a loan is to go into the bank with no documentation. A banker needs to have documentation for the dollar amount that you are requesting. They will also want a detailed report of why you feel that you need that amount.
The banker will also request for a projection of when the loan can realistically be paid back. They will want to know how often you will make payments. Should you decide on monthly payments, the bank will then want to know the amount of that payment. If the loan is of considerable amount, the banker will need to know what you plan to use as collateral. A company’s assets are normally used as collateral. Real estate, however, is the biggest asset used as collateral.
A financial history for your company will need to be submitted. This includes balance sheets, profit and loss statements. If your company is already established you will need to have up to three years worth of these documents. Should you just be starting this business, a very detailed business plan needs to be provided to the bank.
Projected profits and projected cost flow for the next year will need to be done on a month to month basis. All projected money coming into the company should be detailed out for the banker. All expenditures, from supplies to salaries, also need to be in a detailed form.
The banker will want a detailed report of where you envision your business each year for the next three to five years. Included with this should be all expansion ideas for employees, locations, products, etc. The bank will need to know the plans for the company’s future and the direction that you want the company to head in the future.
Other information the bank will want to know will be the business experience that you have or have had. You need to tell them about any degrees or certificates you have. They will also want to know how long you have worked in the industry.
If you don’t get your loan, let the lenders know that their rejection doesn’t discourage you. You should portray confidence and determination. You need to try several lenders until you receive the money you need. Be confident and proud of your venture into the business world. You should let the lenders know that you are in control and you know what is best for you and your business. Ask the bankers why you did not get the loan. Take that answer, learn from it and then move on and try other lenders.
As a business owner, the most difficult task is finding the money to operate your business. Take the necessary steps to minimize difficulties when preparing for a business loan. The most important task when getting ready to apply for a loan is to prepare a very detailed business plan.
Govind Prashanth Ketty is the owner of OnlineBizMachine.com and writes on a variety of subjects. To learn more about this topic and start your own Online Business Govind recommends you visit: http://www.OnlineBizMachine.com
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