Top 15 Questions

1. What kind of person makes a successful entrepreneur?

Research of successful entrepreneurs has documented that successful small business people have certain common characteristics. This checklist can not predict success, but it can give you an idea of whether you will have a head start or a handicap with which to work. How do you measure up? Ask yourself these questions: Can I persevere through tough times? Do I have a strong desire to be my own boss? Do the judgments I make in life regularly turn out well? Do I have an ability to conceptualize the whole of a business? Do I possess the high level of energy, sustainable over long hours, to make a business successful? Do I have significant specialized business experience? While not every successful business owner starts with a “yes” answer to all these questions, three or four “no’s” and undecided answers should make you think twice about going it alone right now. But, don’t be discouraged. Seek extra training and support with help from a skilled team of business advisors such as accountants, bankers, attorneys and SCORE counselors.

2. How do I determine whether I am capable of starting a business?

Small business owners have many things in common. Below are some of the qualities you will need to be successful. Willingness to sacrifice—If you enjoy working 9-5, do not go into business for yourself. Entrepreneurship often requires many more hours beyond the forty-hour work week. Interpersonal skills—You will be required to interact with a host of people other than customers: lawyers, employees, salespeople. If you do not like talking to people you do not know, better keep your day job. Leadership ability—You will be the one everyone turns to for the answers. Are you ready to call the shots? Optimism—Being able to hang in there when business gets tough is an important quality in small business owners. Compare your skills and expertise with others who are successful in similar businesses. Can you duplicate and surpass the capability of other successful businesses? What unique skills, or “edge,” can you provide to obtain a sufficient share of total market? Review business journals, trade magazines and other comparative studies that identify the requirements to operate the business. From that information, derive a formula for the skills and traits you plan to incorporate into the business operation.

3. Why is a business plan important and who should write it?

A business plan is important because it summarizes both your vision for the company and your blueprint for the company’s operating success. The business plan is a written guide that details the start-up and the future direction of your company.Who should write the plan? You, the entrepreneur. No one else knows your business idea and goals better. Yes, there are services that can do the work for you. However, you must present this business idea to bankers or other investors. Therefore, it is best if you are very familiar and comfortable with the plan.Although there’s no set format, a good business plan typically includes: Cover page—Identifies your business Table of contents—Organizes information for the reader Executive summary—Provides a “big picture” view of the plan, highlighting the factors that will lead to success Business background—If it is a brand-new business, include your background and skills Marketing plan—Relates the business’s marketing strategy Action plan—Summarizes how you will create and deliver your product or service Financial statements and projections—Illustrates how the business will perform financially based on the plan’s assumptions Appendix—Includes statistical analyses, marketing materials, résumés.

4. If I am not planning to apply for a bank loan, why do I need a business plan?

The fact that a bank or lending institution requires a well-executed business plan is a secondary consideration. The primary purpose of the business plan is to guide the owner or manager in successfully operating the business. Preparing the plan forces the writer to consider all aspects of the business and to confront any problems the plan highlights.For example, a monthly compilation of all known costs, over time, will indicate the revenue necessary to support these costs, plus a profit. This leads to the question of whether or not this revenue number is reasonable. If not, it may cast doubt on the viability of the venture itself.The business plan is a vital management tool that enables the manager to anticipate situations before they become problems-or worse yet emergencies.

5. How do I determine my start-up costs and other expenses?

It is wise to find out what start-up costs you will incur before starting the business. Many a budding entrepreneur takes his or her life savings, or will borrow on the equity on their home before figuring these financial factors, only to find that they don’t have enough money. There are many web sites and other resources (including SCORE offices and Business Information Centers) that provide guidelines and worksheets to help determine costs for your business.Each item on your proposed budget sheet should be researched. Closely estimated costs can be obtained from utility companies, trade associations, shopping and networking with other business people who may have already gone through this experience. Do not start buying until the investigation shows this venture is viable and you have all the information needed.

6. What do I need to know about financial statements?

First, you need to know which financial statements are important. They are: Balance Sheet—shows the financial conditions of your business at a point in time Statement of Operations (Profit and Loss Statement)—shows whether you made a profit during a specific period of time Cash Flow Statement—shows what happened to your cash position during a specific period of time You should have a basic understanding of each of these statements. When compared with statements from prior periods, you can determine whether something is happening in your business that needs your special attention. Your accountant can prepare these statements for you from the business data that you supply. There are also a number of computer software programs that will help you generate these statements from your input of regular transactions—such as sales, collections, purchases, payments and payroll. A SCORE counselor can help you understand these statements and may be able to direct you to a workshop on this subject. In addition, most community and business colleges teach courses in financial statement analysis.

7. Why is it important to do a monthly cash flow analysis?

Your businesses cash-flow cycle may differ substantially from the income statement projections. Even if the projected income statement shows a profit, it is possible that the cash flow for the same period is actually negative.The analysis of monthly cash flow can indicate whether your business will collect sufficient cash to pay operating expenses. It will point out specific months during the year when the business may experience operating cash shortfalls and, therefore, either require additional capital or excess cash reserves for payment of expenses. It will also show when you may be able to make debt reductions and when there is excess cash to make major purchases or expand operations.By developing a monthly cash flow projection, you can time cash needs and quantify the amount needed. The cash flow projection is an important management tool and must be developed with very realistic expectations. Sufficient cash is critical for a business to pay its expenses and to enable it to expand. If your monthly cash flow projections indicate frequent cash shortfalls, you should review the type of products and services that you offer, the mix of sales, the pricing and terms of the sale and your short-term borrowing needs.

8. How can I obtain cash to maintain and grow my business?

Develop a positive business relationship with your bank. Seek your banker’s advice even at times where you are not seeking funds. You may find that every time you go to your bank you speak to a different loan officer, so you should know them all.When the loan officer gets a promotion, you must start all over again with another person. If you want the bank to take an interest in your business, then you have to take an interest in theirs. How? Know your banker—Take an interest in your banker as a person. Ask your banker to hold on to your account if he/she is promoted. When you go to see your banker, have your business plan and financial papers ready. Make it easy for your banker to see what you want and why. The bank wants to minimize its risk with regard to you and your business. This is where you have to sell yourself. Know your bank—Know and understand your bank’s annual report. Know your bank’s business direction and plan. Know the bank’s lines of authority. Get on the bank’s mailing list. It’s an easy way to keep up with bank news. Go to a bank-sponsored seminar—Go to your bank’s seminars on commercial lending. This will teach you how your bank operates in terms of lending policies. By doing this, you also prove that you have an interest in what the bank is doing. Finally, it affords you the opportunity to meet and make an impression on the loan committee.

9. Why is location the most important aspect of my business?

A good location can make the difference between a profitable and a bankrupt business. There are many questions to consider when choosing a business site. Use the questions below as a checklist for potential locations and then compare several sites. Are there parking facilities? Is transportation available and convenient? Is the quality of police and fire service adequate? Will it be a quality site for the future—five, 10, 25 years from now? Is nearby housing readily available for management and employees? Is there nearby competition? Are those sites better or worse than yours? What is the general business climate in the area? Is this a prosperous market? Are merchandise and raw materials available? Are your suppliers easily accessible? How is the traffic flow—can your customers reach you quickly and inexpensively? Is your building suitable to your kind of business—will it need any major renovations? Is there an adequate community infrastructure for utilities (sewer, water, power, gas, etc.)? What is the tax burden—town, city, county, state? Will this impede your business and growth? What are the costs of operation in this location—will it be too high to offer you an adequate profit?

10. Why is competition important?

No business operates without direct competition. There also may be indirect competition, which has a significant impact on customer’s buying decisions in your market.Direct and non-direct competitors try to convince customers to buy their products or services instead of yours. It is in your best interest to learn more about the companies that are trying to reduce your take-home pay. List the strengths and weaknesses of each competitor. Talk with friends, visit your competition, call for information about their products and analyze how they advertise.Next, take a sheet of paper and list the major competitors. Give each a rating, on a scale of one to 10, for product quality, process, advertising, price and customer satisfaction. You can add other ratings that you feel are important.Your business can become more profitable by adopting practices you admire in competitor operations and by avoiding their mistakes. Some of your competitors have been in business successfully for many years. Certainly, as a new or relatively new business, you can learn a lot from them.

11. How can I better market my business?

To market your business, you must define your customer. To maintain consistent sales growth, you must become knowledgeable about your market. Develop an outline of your “typical” consumer: What exactly is your market? Where do the consumers come from? (city centers, suburbs, tourists, international) What are customers buying patterns? Why should they buy from you? (convenience, price, quality, service) Should you try to appeal to a niche market segment or the entire market? Have you missed a new customer segment or special market? How large is the potential target market (in units or dollars)? Is it growing, stable or decreasing? What percentage of the market do you have? Research will provide answers that are not available from your business records and a financial analysis. Conduct research through trade associations, your local chamber of commerce, libraries or even ask for the help of a SCORE counselor. Pay attention to how competitors market to their customers. Perhaps, some of their marketing strategies can be adopted for your business, or you may find examples of what not to do.

12. What makes a successful marketing strategy?

When creating a marketing strategy, keep in mind the four P’s of marketing: Product—What good or service will your business offer? How is that product better than those offered by competitors? Why will people buy/want it? Price—How much can you charge? How do you find the balance between sales volume and price to maximize income? Promotion—How will your product or service be positioned in the marketplace? Will your product carry a premium image with a price to match? Will it be an inexpensive, no-frills alternative to similar offerings from other businesses? What kinds of advertising and packaging will you use? Place—Which sales channels will you use? Will you sell by telephone, or will your product be carried in retail outlets? Which channel will economically reach your market? The marketing strategy should summarize your findings about the key target buyer description, market segments the company will compete in, the unique positioning of the company and its products compared to the competition, the reasons why it is unique or compelling to buyers, etc.

13. What do I need to know before creating a marketing brochure?

A marketing brochure can be long-lasting or short-term. It can represent your business to potential customers and it can be a referral piece for existing customers. Decide the purpose of and goals for the marketing brochure before you begin to design and write. Remember, this brochure represents you and your business; be sure its look and feel complements your business. Here are few tips for when you are ready to begin. State your message up front—The selling message should appear on the cover of the brochure. For instance, “The XYZ Company—Consultants on Doing Business Overseas.” Include artwork—If you have space limitations, one large photograph or graphic is better than several small images that might not clearly portray your services or products. Photo captions—Photo captions are read twice as often as the main copy. Create a keeper—Make your brochure worth keeping. Include a calendar of events in your specific industry or some data that will be useful to potential clients in the future. Quality is key—Your publications reflect you and your business. Using one to four colors in the brochure will make it stand out over one that is black and white. A good quality paper stock is also important (and comes in many colors and shades if you choose to use black ink). Remember to consider the weight of the paper stock in relationship to mailing costs. It is wise to have your brochure professionally designed. Even if you have computer graphic skills, design is best left to professionals.

14. How can I improve customer service in my business?

Develop a strategy that puts the customer first. Customers will receive the best possible service when employees are empowered to make this happen. This is not to say that you should be lenient with your policies, but have a degree of flexibility. Just remember, a lost customer could spread the word of their discontent, resulting in more lost customers.Review the most common reasons for poor customer service. Use these insights as a way to improve your customer service: Too many rules—Employees lack creativity in problem solving. Rules are followed and good solutions are not developed because employees do not want to jeopardize their jobs. Lip service, not customer service—Customer service is really only a name for customer complaints. Time is spent trying to fix problems rather than preventing them from occurring in the first place. Unempowered employees—Approval is needed by a manager for small problems that can easily be solved by a good employee. This problem leads to long lines and time-consuming waits by the customer, who then refuses to come back-business operations turns a small problem into a large one. Unmotivated employees—Personnel are not encouraged to please the customer because there is no merit in it for them. Bad communication—Coordination of functions does not exist-one person may write an order while another picks it off a warehouse shelf and someone else delivers it to the customer. This can result in miscommunication, incorrect goods or services, and time delays. Arbitrary policies—Policies that are followed blindly without room for situational allowances may result in angry customers. For example, a store’s return policy of 30 days prevents a customer who, with good reason, could not get back to the store in time from receiving a refund. That customer will refuse to do business there anymore.

15. Is there anyone who can answer questions specific to my business?

SCORE “Counselors to America’s Small Business” provides free and confidential business advice and mentoring services to entrepreneurs nationwide. SCORE is a nonprofit association consisting of 10,500 business counselors who donate their time and business expertise to guide small businesses via face-to-face mentoring or online counseling.SCORE, a resource partner with the U.S. Small Business Administration (SBA), has assisted millions of start-up and growing businesses since 1964.You can visit the SCORE web site and find a wealth of small business information. A popular online service is Email Counseling, which allows you to choose a counselor from a bank of more than 800 SCORE counselors.Using email, your counselor will answer questions, give advice and otherwise provide valuable support—all for free. Also on the SCORE site, you will find articles written by industry experts and successful small business owners.

Know Your Industry First

You need to explain the type of business you’re in. You’ll be expected to explain the general state of your industry and the nature of the business, especially if your plan is going outside your company to banks or investors.
Whether you’re a service business, manufacturer, retailer, or some other type of business, you should do an Industry Analysis, describing:

• Industry Participants.
• Distribution Patterns.
• Competition and Buying Patterns.

Industry analysis
Everything in your industry that happens outside of your business will affect your company. The more you know about your industry the more advantage and protection you will have.
A complete business plan discusses general industry economics, participants, distribution patterns, factors in the competition, and whatever else describes the nature of this business to outsiders.
The Internet has had an enormous impact on the state of business information. Finding information isn’t really the problem any more, after the information explosion and the huge growth in the Internet beginning in the 1990s and continuing in the 21st Century. Even 10 or 15 years ago, dealing with information was more a problem of sorting through it all than of finding raw data. That generality is more true every day. There are Web sites for business analysis, financial statistics, demographics, trade associations, and just about everything you’ll need for a complete business plan.
Industry participants
You should know who else sells in your market. You can’t easily describe a type of business without describing the nature of the participants. There is a huge difference, for example, between an industry like broadband television services, in which there are only a few huge companies in any one country, and one like dry cleaning, in which there are tens of thousands of smaller participants.

This can make a big difference to a business and a business plan. The restaurant industry, for example, is what we call “pulverized,” which, like the dry cleaning industry, is made up of many small participants. The fast food business, on the other hand, is composed of a few national brands participating in thousands of branded outlets, many of them franchised.
Economists talk of consolidation in an industry as a time when many small participants tend to disappear and a few large players emerge. In accounting, for example, there are a few large international firms whose names are well known and tens of thousands of smaller firms. The automobile business is composed of a few national brands participating in thousands of branded dealerships. In computer manufacturing, for example, there are a few large international firms whose names are well known, and thousands of smaller firms.
Distribution patterns
Products and services can follow many paths between suppliers and users. Explain how distribution works in your industry. Is this an industry in which retailers are supported by regional distributors, as is the case for computer products, magazines, or auto parts? Does your industry depend on direct sales to large industrial customers? Do manufacturers support their own direct sales forces, or do they work with product representatives?
Some products are almost always sold through retail stores to consumers, and sometimes these are distributed by distribution companies that buy from manufacturers. In other cases, the products are sold directly from manufacturers to stores. Some products are sold directly from the manufacturer to the final consumer through mail campaigns, national advertising, or other promotional means.
In many product categories there are several alternatives, and distribution choices are strategic. Encyclopedias and vacuum cleaners are traditionally sold door-to-door, but are also sold in stores and direct from manufacturer to consumer through radio and television ads.
Many products are distributed through direct business-to-business sales, and in long-term contracts such as the ones between car manufacturers and their suppliers of parts, materials, and components. In some industries companies use representatives, agents, or commissioned salespeople.
Technology can change the patterns of distribution in an industry or product category. The Internet, for example, is changing the options for software distribution, books, music, and other products. Cable communication is changing the options for distributing video products and video games.
Distribution patterns may not be as critical to most service companies, because distribution is normally about physical distribution of specific physical products such as a restaurant, graphic artist, professional services practice, or architect.
For a few services, distribution may still be relevant. A phone service or cable provider, or an Internet provider, might describe distribution related to physical infrastructure. Some publishers may prefer to treat their business as a service rather than a manufacturing company, and in that case distribution may also be relevant.
Competition and buying patterns
It is essential to understand the nature of competition in your market. This is still in the general area of describing the industry, or type of business. Explain the general nature of competition in this business, and how the customers seem to choose one provider over another. What are the keys to success? What buying factors make the most difference–Price? Product features? Service? Support? Training? Software? Delivery dates? Are brand names important?
In the computer business, for example, competition might depend on reputation and trends in one part of the market, and on channels of distribution and advertising in another. In many business-to-business industries, the nature of competition depends on direct selling, because channels are impractical. Price is vital in products competing with each other on retail shelves, but delivery and reliability might be much more important for materials used by manufacturers in volume, for which a shortage can affect an entire production line.
In the restaurant business, for example, competition might depend on reputation and trends in one part of the market, and on location and parking in another.
In many professional service practices the nature of competition depends on word of mouth, because advertising is not completely accepted. Is there price competition between accountants, doctors, and lawyers? How do people choose travel agencies or florists for weddings? Why does someone hire one landscape architect over another? Why choose Starbucks, a national brand, over the local coffee house? All of this is the nature of competition.
Main competitors
Do a very complete analysis of your main competitors. List the main competitors. What are the strengths and weaknesses of each? Consider their products, pricing, reputation, management, financial position, channels of distribution, brand awareness, business development, technology, or other factors that you feel are important. In what segments of the market do they operate? What seems to be their strategy? How much do they impact your products, and what threats and opportunities do they represent?

The Right Business for You

If you want to work for yourself, but don’t have a particular business in mind, you’re probably wondering what kind of business you should start. Fortunately, the answer is always the same: start a venture you know intimately.
Know the ins and outs of the business
Don’t fall into the trap of starting a particular business just because someone tells you, “It’s a sure thing.” Potential customers will part with their hard-earned money only if you convince them that they’re getting their money’s worth, so you’ll need to know what you’re doing, no matter what the task.
Choosing a business you know
Starting a business in which you already have experience has many advantages. You can use your knowledge about the industry, your training and skills, and your network of contacts, who might help you find financing, suppliers and customers.

Example
For ten years Steve worked for several different construction companies — first as a journeyman carpenter and then as a project manager. When he got the itch to start his own business, it made perfect sense for him to start a small contracting business specializing in home-improvement. He knew the industry well, including the best places to buy supplies and what he could charge for services, and he had the required skills, such as how to estimate and bid jobs — and it didn’t hurt that he knew how to pound nails as well. The contacts he had developed over the years were glad to talk to him about running a small contracting business, and many customers he had worked with in the past told him they’d be willing to hire him if he were working on his own.

If you’re interested in turning something you know and love into a business, talk to people you’ve worked with about what it takes to run that kind of business. Learn all you can about start-up costs, overhead and expenses and how much revenue you can expect to make. If you have several interests but aren’t sure which would make the best business, consider how you can translate your strengths, education and skills into business opportunities, and research the marketplace to see which types of business are presently needed in your area.
Starting a business in an unfamiliar industry
Unfortunately, the lure of quick profits convinces many people to start businesses in areas they know little or nothing about. This is a sure recipe for failure.

Example
Leo opened an upscale nursery and garden supply outfit at a time when, seemingly, such a business “couldn’t miss.” Leo knew a good deal about running a small business, had a personality well suited for it and could borrow enough money to begin. However, the business never took off, and it cost him two years and $30,000 to get rid of it.
Why? In his hurry to make a profit, Leo overlooked several crucial facts. The most important was that Leo, a self-described “brown thumb,” knew virtually nothing about plants and didn’t really want to learn. Not only was Leo unable to chat with customers about what types of flowers grow well in partial shade or how to get rid of various garden pests, he didn’t even know enough to properly hire and supervise salespeople. In short, Leo made a classic mistake — he started a business in a “hot” field because someone was foolish enough to lend him the money.

If you don’t know much about the business you want to start, but are set on it, be prepared to spend enough time learning it before you begin.

Research and evaluate your business idea
Here’s a step-by-step guide to evaluating whether you and your chosen business are a good fit.

1. Try it out. Before you start a business of your own, get some experience in the industry or profession that interests you — even if you work for free. Learn everything you can about every aspect of the business. For example, if you want to start a pasta shop, but don’t know ravioli from cannelloni, go out and get a job with a pasta maker. After a few months, you should be an expert in every aspect of pasta prep, from mixing eggs and flour to flattening the dough and slicing it into strips.
2. Talk to entrepreneurs in the same field. If you’re not familiar with the business you want to start and you’re unable to find work in the field, talk with others who provide the product or service that interests you. To increase your chances of getting interviews and reliable answers to your questions, it’s best to do this in a different locale from the one in which you plan to locate. Small business owners are often quite willing to share their knowledge once they are sure you will not compete with them.
3. Evaluate whether you enjoy the work and excel at it. If not, find a new venture. It’s a lot harder to make a success of a business you don’t like, and it’s unlikely you’ll like something you’re not good at. If you enjoyed the work and determined you were skilled enough to base your own business on it, go on to the next step.
4. Judge your ability and desire to handle every aspect of the business. If you don’t want to or can’t pitch in wherever and whenever something needs to be done — whether it involves manufacturing a product, dealing with customers or keeping the books — you should think twice about starting that kind of business.
5. Determine whether the business has a solid chance of turning a profit. After working in the field for a few months, you should have a good idea of whether the business is a potential moneymaker. To be sure, you should analyze your market and conduct a break-even analysis, a preliminary financial projection that shows you the amount of revenue you’ll need to bring in to cover your expenses (this amount is called your break-even point). If you’re able to bring in more revenues than your break-even point, you’ll be in the black (that is, you’ll make a profit).
6. Evaluate the risk this particular business requires. Even the best-laid plans can sour if you pick an unusually risky business. For instance, the following businesses have higher than average failure rates:
   • computer stores
   • laundries and dry cleaners
   • florists
   • used car dealerships
   • gas stations
   • trucking firms
   • restaurants
   • infant clothing stores
   • bakeries, and
   • grocery and meat stores.

If your business idea is on this list, don’t despair — it doesn’t mean you should automatically abandon it. However, you’ll need to be more critical and careful with the numbers when preparing your business plan.

Business Startup Strategy

I strongly suggest that would-be entrepreneurs do a business plan. As a result of completing the plan you will be much better prepared and know whether or not your business idea is feasible. Try the following article for a short-cut. However, I caution you on following a short-cut unless you have substantial experience or knowledge about your area. Proceed with caution without a business plan!
How is your business unique, and why will your goods or services appeal to customers? What are the primary differences between your company and your competitors? What are the driving factors to choose your business over another?
In other words, what is the underlying reason a customer would do business with your company?
1) Define Your Business and Vision
Defining your vision is important. It will become the driving force of your business. Here are questions that will help you clarify your vision:

• Who is the customer?
• What business are you in?
• What do you sell (product/service)?
• What is your plan for growth?
• What is your primary competitive advantage?

2) Write Down Your Goals
Create a list of goals with a brief description of action items. If your business is a start up, you will want to put more effort into your short-term goals. Often a new business concept must go through a period of research and development before the outcome can be accurately predicted for longer time frames.
Create two sets of goals:

1. Short term: range from six to 12 months.
2. Long term: can be two to five years.

Explain, as specifically as possible, what you want to achieve. Start with your personal goals. Then list your business goals. Answer these questions:

• As the owner of this business, what do you want to achieve?
• How large or small do you want this business to be?
• Do you want to include family in your business?
• Staff: do you desire to provide employment, or perhaps, you have a strong opinion on not wanting to manage people.
• Is there some cause that you want the business to address?
• Describe the quality, quantity and/or service and customer satisfaction levels.
• How would you describe your primary competitive advantage?
• How do you see the business making a difference in the lives of your customers?

3) Understand Your Customer
It is not realistic to expect you can meet the needs of everyone, no business can. Choose your target market carefully. Overlook this area, and I guarantee you will be disappointed with the performance of your business. Get this right and you will be more than pleased with the results.

• Needs: what unmet needs do your prospective customers have? How does your business meet those needs? It is usually something the customer does not have or a need that is not currently being met. Identify those unmet needs.
• Wants: think of this as your customer’s desire or wish. It can also be a deficiency.
• Problems: remember people buy things to solve a specific problem. What problems does your product or service solve?
• Perceptions: what are the negative and positive perceptions that customers have about you, your profession and its products or services? Identify both the negative and positive consequences. You will be able to use what you learn when you start marketing and promoting your business.

4) Learn From Your Competition
You can learn a lot about your business and customers by looking at how your competitors do business. Here are some questions to help you learn from your competition and focus on your customer:

• What do you know about your target market?
• What competitors do you have?
• How are competitors approaching the market?
• What are the competitor’s weaknesses and strengths?
• How can you improve upon the competition’s approach?
• What are the lifestyles, demographics and psychographics of your ideal customer?

5) Financial Matters
How will you make money? What is your break-even point? How much profit potential does your business have? Take the time to invest in preparing financial projections.
These projections should take into account the collection period for your accounts receivables (outstanding customer accounts) as well as the payment terms for your suppliers. For example, you may pay your bills in 30 days, but have to wait 45-60 days to get paid from your customers.
A cash flow projection will show you how much working capital you will need during those “gaps” in your cash position.
I recommend thinking about these six key areas:

1. Start up Investment
2. Assumptions
3. Running Monthly Overhead
4. Streamlined Sales Forecast
5. Cumulative Cash
6. Break-even

6) Identify Your Marketing Strategy
There are four steps to creating a marketing strategy for your business:

1. Identify All Target Markets: define WHO is your ideal customer or target market. Most companies experience 80% of their business from 20% of their customers. It makes sense then to direct your time and energy toward those customers who are most important.
2. Qualify the Best Target Markets: the purpose of this step is to further qualify and determine which customer profile meets the best odds of success. The strategy is to position your business at the same level as the majority of the buyers you are targeting. It is critical to figure out who your best customers are and how to best position your company in the marketplace.
3. Identify Tools, Strategies and Methods: a market you cannot access is a market you cannot serve. Marketing is the process of finding, communicating and educating your primary market about your products and services. Choose a combination of tools and strategies, that when combined, increase your odds of success.
4. Test Marketing Strategy and Tools: the assumptions we do not verify are typically the ones that have the potential to create business problems. Take the time to test all business assumptions, especially when you are making major expenditures.

Milk Production

DAIRY PRODUCTION IN FARWEST


Recently Chitwan milk Pvt Ltd. has bought six thousand cows from manchuriya of China to distribute among farmers at low interest loan. it is said that a single cow can give 40 liters of milk a day. and cost for each cow will be 50000 rs. if same type of cow bought from India or other countries then it would cost more than 70000. these cows will be in Nepal within baishak 067. according to shrestha , president of Chitwan milk pvt ltd. those cows will be distributed to farmers of terai districts from kapilbastu to saptari and dhading, gorkha, tanau, and lamjung. shrestha also said "we need 1 lakhs liter milk per day initially and 4 lakhs later.

In context of FARWEST NEPAL


District like kanchanpur and kailali are also of same climate as Chitwan and are terai districts. So it will be to say we can bring those cows to Farwest. Farwest has a great greenery and most people are farmers here. and recently they are known to profit of keeping livestocks.

if a single cow can give 40 litres of milk. a average farmer can buy  two cows from bank or locally. two cows give about 75 litres a day. lets say minimum price of milk will be 25 in Farwest. then 25*75=1855.lets separate 500 for feeding and 355 for other expenses. we can at least get rs 1000 per day. in this way a farmer can overcome his loan in some 4-5 months.little knowledge little confidence and a pack of working enthusiuam can change the face of our Farwest. i hope a lots of comments on this . "Aarthik kranti" is only way to develop.

Introduction to Dhangadi

Kailali District, a part of Seti Zone, is one of the seventy-five districts of Nepal, a landlockedcountry of South Asia. The district, with Dhangadhi as its district headquarters, covers an area of 3,235 square kilometres (1,249 sq mi) and has a population (2001) of 616,697. Dhangadhi is a center of attraction of not only Kailali district but of the whole seti zone. The district also contains Tikapur Park, one of the biggest parks in Nepal, and Godha-Ghodi Tal lake.

Dhangadhi is a city in western Nepal on the border to India. It is the capital of Kailali District in the province of Seti.

At the time of the 1991 Nepal census it had a population of 44753 residing in 897 individual households.^[1] It is the largest city in the far-West region of Nepal. The city is well connected with other major cities of Nepal and Indian cities of Uttar Pradesh. The city airport is located 10km away, which is being extended so that to accommodate landing of Fokker-100. The Airport will be second biggest in the country after TIA.

red area is dhangadi

Introduction to Mahendranagar

Mahendranagar(महेन्द्रनगर), is a city and municipality in far western Nepal, six kilometres from the border of India and the Mahakali River. It is the headquarters of the district of Kanchanpur in the Mahakali Zone, which is inhabited by people of various races including the indegenous Tharu people.

Mahendranagar is the 8th largest city in Nepal after the cities of Kathmandu,Pokhara, Lalitpur, Biratnagar, Dharan, Birganj and Bharatpur. It is 5 km East of the Indian border and 700 km West of Kathmandu. At the time of the1991 Nepal census it had a population of 62,050.^[1]

The name of Mahendranagar is related to the name of late king MahendraBir Bikram Saha of Nepal. After becoming a republic in 2008 the city name has been changed to Bhim Dutta.

Society

Indigenous people are the Tharus but now people from all over country have migrated to the area. Mahendranagar is now the unique combination of all ethnic groups representing the overall society of Nepal. The festivals celebrated by people in Mahendranagar fully reflects the blend of all groups. The ethnic Tharu people celebrate Dhikri festival while Brahaman and Chhetriprimarily celebrate Gora (commonly called Gaura Parba). Later Dipawali (also called Diwali ) appears as a major festival which includes Laxmi Pooja, Gai Thiar , and Bhai Tika. More recently Dashain has been accepted as a major festival. It appears the people of Mahendaranagar have truly accepted all festivals as an integral part of their joyful life.

Services

Mahendranagar is the main business centre of the Mahakali Zone. Mahendranagar is a major provider of education, health and employment opportunities in west Nepal. Mahakali Zonal Hospital and other private hospitals provide health care. Similarly, Siddhanath Science campus, Siddhanath multiple campus Campus, Mahendranagar medical college and other colleges provide advanced education. Because of the business center people from rural area come for the test of their luck here. Transport and Communication:- Telephone fax, email and Internet is available from here, there is a domestic airport in Mahendranagar with air service to Kathmandu. Bus service connects Mahendaranagar to all the other parts of the country. Mahendra Highway, the longest highway of Nepal has its one end in Mahendranbagar the other being in eastern city Kakarbhitta And is also connected by some of the sub highways with the hill towns of Dipayl, Baitadi, Amargadhi, and Darchula. Road transport is also linked with bordering India to Banbasa and Tanakpurthrough the bridges in Mahakali river making Mahendranagar the nearest city of Nepal from New Delhi, the capital of city of India.

Mahendranagar is also hub of activity for various industries running between India and Nepal. It is 8 miles away from the infamous Mahakali river. It is one of the best places to live in Nepal and also is host to Royal Shuklafanta National Park