The Fundamentals of Starting and Growing Your Own Business

1
The Fundamentals of Starting and Growing Your
Own Business
Quadrant Business Management Group
2
NOTICE Quadrant Business Management Group (QBMG
) does not imply or guarantee any degree of
business success by using the information
contained within this document.
Any companies and/or references provided in this
document are examples only. QBMG assumes no
liability for the products, services or
information provided by these or any other
entities referenced in this document.
3
Finding the Right Business Think Sheet
Goals What are your GOALS for starting your own
business? (Answer WHY you want
to do this. What do you intend to achieve)More
family time ? Additional income ? Primary source
of income ? Greater life flexibility ? Family
member care ? Independence ? Greater Security ?
Long-Term Income
Passion
What activities make you happy!!
PersonalInventory
Do you have a hobby? Do youlike helping people?
Do you have a specialized skill that you enjoy?
Create a business out of what you know and enjoy
and it will not even seem like work! All that
remains is deciding whether you start out on a
part-time basis or go full out. Use your
Personal Inventory to help identify the type of
business and your Goals to keep your Passion
fired up.
What do you enjoy doing? ? How much time per day
can/will you devote to your business ? Can you
afford to quit your job? If not, can you build a
part-time business? ? What type of personality
are you? Outgoing, reclusive, center of
attention, behind the scenes?? Do your prefer to
work with/for a company or start your own company?
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
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Business Type Guide
Business types are as individual as the business
person. The determination on what type of
business to initiate is primarily driven by four
factors Own your own business or work for an est
ablished company as an independent or
franchisee. The amount of time required to make a
nd keep the business productive.
Finances - Whether you need to continue working
while building a business and/or have the
resources to make the initial business
investment. Your individual skill set and level o
f experience (some ventures do not require any
previous skills or experience!)
Four Business Types Direct Sales Network Mar
keting Product or Service Provider Franchise
How To Know Which One Is Right For You?
Do Your Research! An overview of each Business Ty
pe listed is provided on the following pages.
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
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Franchise Opportunities

• The advantages of owning a franchise operation is
  that typically, you are starting with a company
  that has a track record. Consequently, start up
  time is usually faster and the venture less risky
  (but not always).
• Because you belong to a company with multiple
  franchise operations, purchasing power the
  power of bulk-buying can be leveraged.
  Marketing, a major percentage of business costs,
  is usually done for you (to greater or lesser
  degrees) or a marketing budget allocation may be
  given.
• Business support is inherent in franchise
  operations because operational models and methods
  are provided by Franchisor.

Some Considerations Models and methods are provid
ed by Franchisor you must adhere to their
dictates Can be costly for well-known business or
service If less costly, most likely less known
You will most likely not have a say in many
matters
Example Franchises Real Estate Carpet Cleaning
Almost any business operation that can be
duplicated!
The above companies and references are provided
as an example and QBMG assumes no liability for
the products, services or information provided by
these or any other entities referenced in this
document.
Franchise opportunities abound in almost every
area of business. One source is www.business.com.
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
6
Product Service Provider

• Independent Product and/or Service Provider
  businesses are frequently started by people that
  turn a specific skill or hobby into a business.
  These types of businesses are as diverse as the
  people themselves.
• First and foremost, ask yourself what you LIKE to
  do? It makes little sense to build a business
  doing something you dislike. It is not uncommon
  for people to leave their corporate job to go off
  and start a business doing exactly the same job
  they previously left. Unfortunately, some
  discover that it was not working in corporations
  they disliked it was the job itself! When
  building a business, it is vital to your success
  that you enjoy the endeavor. Imagine where the
  world would be today if Bill Gates disliked
  writing computer code!

ExampleProduct and/or Service Companies
Consulting Computer training Gift Baskets Hand
-carved rocking horses Marketing services Day ca
re providers
Some Considerations Start up costs will vary base
d on the business You will be blazing your own
trails business planning, advertising, marketing,
etc. If product or adjunct services are required
, you will need to put sourcing arrangements in
place. This can drive both the quality and cost
of your product or service. Licensing Does the
service you provide require a license or permit?
Federal, state or local regulations
For products or services
The above companies and references are provided
as an example only and QBMG assumes no liability
for the products, services or information
provided by these or any other entities
referenced in this document.
Do your research in the area you select before
you get started. The Small Business
Administration, www.sba.gov, is a good source.
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
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Network Marketing

• Network Marketing is one of todays hottest
  business models using an alternative to
  traditional sales and distribution methods
  
• It bypasses the typical chain of wholesaler to
  distributor to retailer and channels goods or
  services directly from the manufacturer to the
  consumer through a network of independent
  consultants. Some companies allow consumers to
  purchase wholesale goods delivered directly to
  their door.

If I had to do it all over again, rather than
build an old style type of business, I would have
started building a Network Marketing business.
Robert T. Kiyosaki Author of "Rich Dad
Poor Dad
Some Considerations Start up costs can be minim
al depending on amount of stock that must be
carried, cost of marketing materials, etc.
You will need to market yourself
Company history, stability, reputation,
products (consumables) What training and support
is provided This can make all the difference in
your success Compensation plan speak to realist
ic people who have been with the company for a
time Be prepared to build SWEAT equity
Example Companies Arbonne Shaklee Amway Lim
u
The above companies and references are provided
as an example and QBMG assumes no liability for
the products, services or information provided by
these or any other entities referenced in this
document.
One reference source is Network Marketing
Answers to Your Top 5 Questions by Rod Nichols,
May 2006 issue of Entrepreneur.com.
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
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Direct Sales
Direct Sales typically involves promoting a
product for sale directly from the manufacturer.
There is considerable overlap between Direct
Sales and Network Marketing, with many companies
falling into both categories. Advertising and mar
keting are normally provided to varying degrees
- as are forms and business materials (at a
cost). The benefits of Direct Sales include hav
ing a business model that is already done,
inexpensive supplies (normally) and typically, a
large number of products available to represent.

Some Considerations You still need to market y
ourself How much training is involved and what i
s provided by the company Is there inventory that
you are required to carry and what is the cost
Validate company stability and reputation
Compensation plan speak to realistic people who
have been with the company for a time
Example Companies Fuller Brush Company Tupperwar
e
Avon
The above companies and references are provided
as an example and QBMG assumes no liability for
the products, services or information provided by
these or any other entities referenced in this
document.
A source for Direct Sales companies is the Direct
Selling Association - www.dsa.org
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
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Business Planning Basics

• Business planning should be the first step in
  starting your own business. Business Planning
  allows you to think through the Why, What, When,
  Where, and How aspects of your new venture.
• The following items should be addressed in your
  preliminary business planning activities.
  
• Business Description What products and/or
  services are you going to offer.
  
• Motivation and Goals Why do you want to start
  your own business and what do you intend to
  achieve?
  
• Target Market and Customers To whom are you
  going to sell your products and/or services.
  
• Market Analysis Is your target market growing,
  static or shrinking? Why?
  
• Value Statement What value will your product
  and/or service give to your customer. Will that
  value be perceived as worth the price you will
  charge for the product or service?
• Competitive Edge Who are your top competitors
  and why will people buy YOUR product or service.
  
• Marketing/Sales Strategy How are you going to
  market and sell your products/services? What is
  the estimated cost of sales and marketing
  programs?
• Internet (e-commerce) Marketing and Sales
  Strategy How will you use the internet and what
  are the associated costs?
  
• Personnel Skills Assessment What is your
  education background and work experience in the
  business you plan to start? Are there skills you
  will need that you do not possess?
• Office Location and Business Equipment
  Requirements Located in home or leased office
  space? Define all needed office equipment and
  associated cost. (e.g., desk, chairs, phones,
  computer, fax, internet, printer, etc.)
• Business Name and Registration What type of
  business organization will you register as- Sole
  Proprietor, Limited Liability Corp (LLC),
  Corporation, etc. Each type of organization has
  it own rules of operation. Understand what these
  are.
• Licenses, Permits and Insurance What license,
  permits and insurance are needed to operate.
  What is the associated cost?
  
• Cost Analysis What are all of my projected
  costs (fixed, variable, product, delivery, etc.)
  
• Income Forecast What are my projected revenues
  for the next set time period (typically one year)
  
  
• Cash Flow/Break-Even Statement What will my
  cash position be after accounting for estimated
  sales, costs and investments in my company.
  (typical time period is one year.) How much do I
  have to sell on a monthly basis to breakeven?

This Business Planning Basics outline is not
intended to serve as a thorough business plan but
as a preliminary guideline to help you think
through important business planning aspects.
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
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Getting Started Checklist
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.
11
Success Points to Ponder

• Understand WHY you want your own business and
  keep that foremost in your mind
  
• PLAN
• Create and Use a Business Plan
• Create and Use a Marketing Plan
• Set and focus on Achievement Goals and Milestones
  
  
• Set-up Periodic Checkpoints and adjust your
  course as necessary
  
• Build in Rest Stops along the way
• Stay Focused and Energized

Think SMART Make Your Goals S StrategicM M
easurableA AchievableR RepeatableT
Timely
QBMG does not imply or guarantee any degree of
business success by using the information
contained within this document. QBMG assumes no
liability for errors or omissions.