Posts Tagged ‘business planning’

Borrowing From Friends and Family: Pros and Cons

by admin on Sunday, December 21st, 2008

Are family and friends a good source of finance for your business?


If you’re struggling to raise finance for your business idea it might be tempting to raise the money you need from friends and family. There’s good chance they’ll help but is it a good idea?

Borrowing Startup Capital from Friends and Family: The Pros

  1. You Can Get It -Borrowing from banks will often require collateral, finding investors means having a big enough idea to deliver a return for you both. If you don’t tick either of those boxes, family and friends may be an option.
  2. No Interest - Friends and family will probably not ask for interest payments - saving you money. You may not even have to give up any equity.
  3. Flexible Repayments - There’s a good chance that you won’t have to pay back what you borrow on a strict schedule - handy when your cash flow is unpredictable.


Borrowing Startup Capital From Friends and Family: The Cons

  1. You might lose it: It’s a fact of life that some businesses fail. How will you feel if you can’t repay what you borrow?
  2. They might back you anyway: I say anyway, as in, even when your idea isn’t that good. Finding bank funding or investors to back you means proving your business plans are sound and that your idea is likely to make money.
  3. Mixing Business and Personal: What happens when Dad wants to get involved in the business because he lent you the money? Do you really want to mix your business and personal lives in that way?
  4. Lack of Professional Advice: Finding an outside investor usually means finding someone with experience in business - and maybe even contacts in your industry. Either way, they can bring more to the table than just money.


Ultimately many small businesses do turn to family and friends when it comes to finding finance for their startup idea. It can work, but it’s certainly worth giving it a little thought before you start hitting up Mum and Dad at the Christmas table this year.

Do You Really Want to be an Entrepreneur?

by admin on Friday, December 19th, 2008

WANTED: Individual to work long hours, invest own money and do all the work with no guarantee of pay.


With C-day fast approaching many people are looking forward to their office parties and a relaxing break for a few weeks.

Of course, that’s not the case for everyone. Some people will be using these few weeks to work; to burn the midnight oil, to craft marketing materials and draft business plans. And to do it all for no pay.

Funnily enough you don’t see that position advertised in the job centre all too often but entrepreneurship is a career option that more and more people are taking every year.

Despite our current economic downturn (and in some cases because of it), people are still planning and starting businesses.

Certainly, high-profile entrepreneurs and TV shows like The Dragon’s Den have helped make business ownership sexy.

Add to that stagnating public sector wage levels, the rise of franchising, more flexible working arrangements throughout the economy and the all but extinct notion of a ‘job for life’ and going it alone seems a pretty decent option.

But is running your own business all it’s cracked up to be?


For one thing, the ‘freedom’ of being the boss often comes at the cost of any possible social life. The security of a monthly paycheque is replaced by a constant effort to dodge the bank manager’s calls and eek one last payment out of your already melting credit card.

And what about those occasional ‘borrowings’ from the office stationery cupboard? Well, they’re not so fun when you’re the person who bought the stapler in the first place.

Not exactly, the Ferrari-driving, jet-set-living, high-flying lifestyle you might have dreamed about then.

Why people start businesses


Then again, most people who start businesses don’t do it for the flash car or the big house. The idea of the archetypal entrepreneur raising millions to start a business and conquer the world is rarely the case.

All sorts of people start businesses; young and old, well-off and working class, experienced and novice. And they do it for all sorts of different reasons too; ask any number of entrepreneurs the big question – ‘why?’ – and you’ll hear any number of different reasons.

‘I wanted to have some control’

‘I wanted something that suited my lifestyle better.’

‘I’m passionate about my business, I just love doing it’

‘I just couldn’t see myself working for someone else’

Those kinds of answers do have something in common though. The idea of ownership.

Simply put, people that want to own their own business do so precisely because it is their own business. It’s theirs to create and manage and run how they see fit. If something good comes of it – the car, the house, the well-earned holiday – it’s because they made it happen.

And, if things go wrong – at least they had some say in the matter. Why are business owners willing to work longer hours and run the risk of it all going pear-shaped? Because they’re doing it for their business.

And while they’re at it, they also deliver benefits for every single one of us.

Small businesses create jobs, they deliver the services we enjoy and the bars, cafes, shops and restaurants that make our cities growing and vibrant places.

While it’s great (and rare) to see big business delivering hundreds of jobs in one fell swoop - with the prerequisite photo call with ministers and council officials in tow - what we should really be encouraging and celebrating and championing is the individual with an idea and the willingness to make it work.

Unfortunately, that’s still not something we’re overly keen to do. All too often we’re faster to tear down and criticise than to build up and promote and are more concerned with finding the reasons ‘why not’ rather than encouraging the people who simply get on with it.

Entrepreneurship is not for everyone but it can be for anyone. Anyone who’s willing to give it a go.

If that’s you, then let’s get started - we’ve got a lot of work to do in 2009.

Planning Your Marketing in 2009

by admin on Friday, December 19th, 2008

What are your plans for 2009?


2008 has been a challenging year for small businesses - and the economic outlook isn’t looking all that rosy for 2009 either.
Marketing in particular is something that should be high on most startup businesses’ agendas for the coming year.

Getting those first few clients and customers makes all the difference.

So how do you market yourself in a downturn?

Top tips for planning your marketing in 2009


Justify Your Expenditure

Marketing should drive sales. Whether you look at it over the short term or take a longer ‘brand building’ view, every penny of marketing expenditure should help you achieve a clearly defined business goal.

If something is ineffective then you can either choose to cut that activity or to make the changes necessary to ensure that it does work. Often the problem is not with the idea itself but with the execution.

To analyse your marketing effectively you need to be able to measure the response you get. If you don’t currently have a plan to measure your marketing response rates, then that’s our next tip for 2009.

Measure Everything

You wouldn’t put money into a savings account without knowing the interest rate. Marketing is an investment just like any other – the purpose is to use marketing to grow your business. If you invest X you want more than X back.

As a startup with limited resources this is doubly true.

For each marketing activity you undertake (from placing an ad in the paper to buying a new sign for your shop) set down clearly defined goals that you want to achieve. Once you have the goals written down you can start to judge how effective each activity is in achieving those goals. If it doesn’t stack up, you need to change it.

Start with Small Tests

If your budget is tight the worst move you can make is to bet the farm on a single marketing strategy. It is better to test new ideas with small investments of time and resources. If you get the response you want, it’s easy to scale them up.

Don’t Be Afraid to Get Your Hands Dirty

If you are serious about the success of your new business then you need to be prepared to do whatever it takes. Successful entrepreneurs don’t get away with saying, “I don’t like networking so I won’t”.

If knocking on doors is the best way for your to start getting customers then get knocking. Do not allow yourself to avoid the obvious answers just because you don’t like the look of them - especially when money’s tight.

Replace Anything You Stop

As a startup you can’t simply move from one marketing idea to the next - they should all be working together to build your brand and develop new business. So, if you decide to cut a marketing activity don’t leave holes.

Replace cut marketing activities with new ones. Often this will mean replacing marketing that is financially expensive for marketing with little financial outlay.

For example, you may decide that the flyers you tested are not effective. Building an online presence may be more effective but what you save in cash terms you’ll need to make up for in time committed.

2009 will certainly be challenging but the startups and small businesses that emerge as the winners will be the ones who meet the challenge, not simply hide away until the storm passes.

Setting SMART Goals for 2009

by admin on Wednesday, December 17th, 2008

As they new year approaches a lot of entrepreneurs will start reviewing the successes and failures of 2008 and planning for 2009.

Of course, planning for your business is a great idea - but how do you ensure that the goals you set are goals that you can achieve and not just wishful thinking?

One way is to set S.M.A.R.T. goals: Specific, Measurable, Agreed Upon, Realistic and Time Based.

Setting Specific Goals


Specific goals are detailed, clearly defined goals. ‘We’re going to improve our position in the market in 2009′ is not clearly defined. What does ‘improve’ mean, which ‘market’? Be as clear about your goals as possible.

Setting Measurable Goals


Measurable goals takes clearly defined and adds a number. Achieving 10% growth in sales is measurable, reducing costs by £5000 is measurable. ‘Improving customer service’ is not measurable but ‘increasing customer retention rate to 95%’ is measurable.

Setting Agreed Goals


Everyone needs to be pulling in the same direction in order for you to achieve the goals you set down. Even if your entire business consists of just you, there are still others with whom you should discuss your goals. Is you significant other behind you? What about your bank manager, your suppliers or your professional advisors?

Setting Realistic Goals


Goals are designed to motivate and provide you with a direction to focus your energies. Big goals are great, but, if 2 months into the year you realise that you have no chance of achieving them then they can actually serve to demotivate.

Setting Time Based Goals


SMART goals have a deadline. The new year provides an ideal time frame for achieving your newly set goals - in 2009. However it’s often useful to set shorter term goals to measure your success against and ensure that there are no ‘down’ periods. What will you aim to achieve by July 1st? What’s the goal for the end of January?

As always, be realistic with the amount of time you allow yourself - too little and it’ll be unrealistic, too much and it won’t challenge you. But once you’ve set your time based goals don’t allow yourself to ‘move’ the goalposts.


One of the best ways to help set and keep on track to achieve your goals is to find a business mentor to work with.

Join acfuse.com for free and find a mentor for your business.

Is it time to quit your day job?

by admin on Tuesday, December 16th, 2008

It’s the dream of many entrepreneurs to walk into work, hand in their notice and never look back.

Free from the shackles of the 9-5 you’ll be able to focus on building your business and enjoying the life you’ve always wanted.

But is quitting your day job really the right idea?

Three questions to ask before you quit the day job


Do You Have Enough Money?


This could be all three reasons as it’s the most obvious and the most critical. New businesses need money to run and to grow.

You need money too. You need money to live on, to pay the mortgage and to fall back on in case of any emergency.

Before you pack in the day job you need to do some serious planning. How much is your business going to cost to set up? How much will it cost to run each month? How much do you need personally?

Add all these together for the next 12 months and you’ll start to get a feel for the kind of money you’ll need to have set aside. Of course, you’re new business should be earning money as soon as possible but how realistic are your projections?

What happens if you only do half as much business as you hope? What is customers and clients take longer to pay you?

Plan your finances in detail and get professional help where you can. Always underestimate the amount of money you will make and overestimate the amount you will have to spend.

If, after all that, the numbers still make sense, you need to ask …

What can you do while still at work?


Is your day job really holding you back from following your dreams or is there work that you can be doing to help move them forward - and still keep the monthly paycheck?

Many successful businesses can be started part time - putting in the hours in the morning, at nights and on the weekend. There are 168 hours in a week, you’re at work for 40 of them. Even if you get a solid eight hours sleep a night you’ve still got over 70 hours left.

What could you accomplish by spending 20 of those hours working on your business?

If you can find ways of getting hanging on to your salary while still building your business it’ll be much less risky when you finally do take the plunge.

Are you really ready?


You’re never too young to start a business.

But it it is possible to be under-prepared. Do you know enough about your industry? Do you have the skills, the qualifications and the contacts?

Ever good entrepreneur wants to get started on their business idea yesterday - but sometimes the best bet is to do as much as you can pre-launch to ensure your success when you do go it alone.

If you can do that with a salary, why not?