Why a Business Plan? Avoid the Path to Failure

Why would you need a business plan for an established business? Did you ever have one? Maybe things are just fine, business is great, and your business is making tons of money. And very possibly, your business is doing the best it can already. However..what if it isn’t? How will you know?

Let us consider for a moment that your business could be better. Without a thoughtful, honest and focused look at your business and the industry you are in, you may be missing opportunities. Or you may not be aware of certain market indicators that would cause you to revisit your current way of doing things. To be ahead of the game; “forewarned is forearmed” so to speak.

A business plan will bring all of the components of a successful business into focus. You will have an excellent handle on market conditions, your competition, new methods, services or products within your industry, pricing information, potential new clients or customers, marketing and sales techniques, opportunities for new business relationships, revenue streams and much more.

For a start-up business, it will tell you whether your plans make economic sense and if a possibility for success exits. It also becomes your roadmap to develop your business and will be the tool that helps convince lenders or equity partners to invest or reinvest in your venture. Lenders of any type will not lend unless they know that you have thoroughly researched your business idea or expansion. And even then, you had better be prepared to answer a lot of questions. Of course, you knew that.

If you are buying a business, ask to see their business plan. You need to see what they had in mind for the business and if they were on track. You may be asked to sign a non-disclosure. If after reviewing their plan, you choose to continue with the purchase process, write your own business plan, or hire someone to do it for you. Make the purchase contingent, if you need to, but do not buy a business without a business plan of your own. It could end up saving you quite a bit of money or making you a lot of money. Either scenario is much better than losing your shirt.

Choosing the Right Type of Business

Do you want to start your own business, but want to make sure your business has good income potential? You should consider starting a rental business. There is a huge market for this type of business, and you can rent anything from homes to garden tools. There’s good profit potential in it, too.

Here are some types of rental businesses that enjoy success and are popular: construction equipment, office furniture and equipment, party supplies, camping equipment, watercraft, tools, hot tubs, movie props. As you can see, it’s a pretty varied list. It’s a very straightforward kind of business though.

People rent items they need to use for a limited time. If someone is only going to want a hot tub for the summer months, or during a vacation week, it likely won’t make sense to them to purchase it outright. Renting, however, would be an excellent option.

Anything someone might purchase and use over time is a potential product that could be rented. Plus, both parties benefit. You, as the business owner, generate cash flow off of a one-time investment of purchase price. The customer benefits from saving money on something they would otherwise have had to buy themselves.

You don’t need a storefront to start this business. You can operate out of commercial rented space, or just out of your home. If you have a family and kids to look after, this is a huge plus that draws many people to jobs like these. It’s incredibly convenient to have the ability to take care of things at home when anything arises. However, you don’t want to get caught up and distracted, as many people can easily take their focus away from their work when they’re performing it from a home office. Exercise discipline and treat it as you would treat a typical day job. All you need is to get your rental inventory together, and then do some advertising to attract customers. Once business starts, the income flows in!

Depending on what goods you will be renting you may have substantial start-up costs. You can make the start-up cost more reasonable, though, if you buy used goods to rent out.

Here’s a rough guideline for pricing. Smaller items rent out based on the length of the rental period. By the day, they go for 3 to 5 percent of purchase price. If renting by the week, charge ten percent. If renting for the month, charge 20 percent.

Good luck with your new business venture! If you keep these simple tips in mind, it will really help you start off on the right foot and get your business up and running.

Working With People in the Cleaning Business

You have always dreamed of owning your own small business, and now you have an opportunity to do it. All you have to do is learn the basics on how to run a cleaning business, worry about your cleaning business startup expenses, and voila! You will have your cleaning business standing in no time.

During your cleaning business startup months, perhaps at least 6 months into the business operations, you will begin to notice your client pool growing, and things are becoming more difficult to handle all by yourself. So this is the time that you consider putting into action that part of your business plan that says “hire some support staff”. For some, they will simply hire employees to make up their cleaning crews. For others, they might hire other personnel to work in the office. Actually, either way is okay – it all depends on what you need for your business.

Hiring Employees
As a house cleaning business owner, you have to make sure that the cleaning service performed in each house lives up to your standards. Now, if you don’t have enough people to do this and everybody is just speeding things up so that they can proceed to the next client for the sake of keeping up with the schedule, you can expect your client list to shorten and shorten as time goes by.

You see, hiring employees may be an extra expense for you. But you must also consider the returns of such investment. If you decide not to hire, you will be spending a minimum extra expense, but you will also lose profit because clients will go searching for another cleaning service who can deliver better results. However, if you do hire employees to be your cleaning crew and they do a good job – as dictated by your standards, you can expect more new clients calling and hiring you.

When you hire employees, you must make sure they are fully covered by insurance, including Employee Fidelity Bonds, and you must also be aware and informed of the tax considerations and employee benefits that you must meet – legalities of being a business owner. This is all part of “how to run a cleaning business 101″.
Hiring Contractors

You also have the option of hiring independent contractors to get the job done. For example, a client wants to have her carpet cleaned, but you don’t offer that service. So you can hire someone who does that – so that you can provide it to your client, thus also providing job opportunities for contractors. In the house cleaning business, you can help both client and fellow businessman.