Small business for dummies

Description

Title Page Copyright Page Table of Contents Introduction About This Book Foolish Assumptions Icons Used in This Book Where to Go from Here Part 1 Getting Started Chapter 1 Is Small Business for You? Working for Yourself — A Dream Come True? Doing what you love to do Earning pots of money (here’s hoping) Being your own boss Staying home Working for Yourself — Reality Strikes Teetering on the edge Working night and day for little pay Weathering feast and famine Getting the Timing Right Timing it right for your idea Timing it right for you Timing it right for the economy Staying Safe or Inventing the Wheel? Playing it safe Finding your own niche Going out on a limb Assessing your chances of survival Getting the Government to Help You Setting Yourself Up for Success Chapter 2 Figuring Out What’s So Special about You (And Your Business) Understanding Strategic Advantage Identifying your secret weapon Focusing on real-life examples Justifying Why You Can Succeed Uncovering your inner mojo Asking three key questions Growing your advantages over time Making sure a demand really exists Understanding How Risk Relates to Gain Figuring Out Who Your Competitors Really Are Understanding why you need to do this Grouping competitors Profiling your competitors Thinking about future competitors Choosing Your Competitive Strategy Pick one, and only one, competitive strategy Connecting your competitive strategy to your strategic advantage Chapter 3 Starting from Scratch, Buying a Business, or Joining a Franchise Weighing Up the Good and the Bad of Buying a Business Buying an existing business — the upside Buying an existing business — the downside Asking the Right Questions Finding out who owns the intellectual property Analysing sales trends, profit and break-even Clarifying what the purchase price includes Calculating the ‘True’ Earnings of a Business Valuing an Existing Business The times earnings method The capitalised earnings method The strategic advantage method Dotting Your I’s, Crossing Your T’s Buying a Franchise Considering the positives Weighing up the negatives Exercising Due Diligence Wising up Putting a franchise through the griller Doing your sums Part 2 Finding Your Entrepreneurial Spirit Chapter 4 Separating Yourself from Your Business Deciding What Path You Want to Take Doing the thing you love to do Getting help and delegating what you can Building a business that’s separate from you Creating a way of doing business Wearing Different Hats Building a Business with a Life of its Own Defining your difference Documenting and building systems Setting goals for you and your business Planning for a graceful exit Appreciating the Limitations of Your Business Chapter 5 Staying One Step Ahead Taking an Eagle-Eye View Looking at what’s happening in your industry Being realistic about industry decline Riding the wave of opportunity Rating Your Capabilities Putting yourself through the griller Prioritising where you need to do better Identifying Opportunities and Threats Doing a SWOT Analysis Putting theory into practice Translating your SWOT analysis into action Creating a Plan for Change Chapter 6 Creating a Business Plan Getting Started with Your Plan Charting a True Course Setting off on your mission Saying what you’re about Matching goals to your mission Assessing the Environment Analysing outside influences Checking out the competition Justifying market demand Declaring Your Battle Plan Building your SWOT analysis Choosing a strategy Expressing your competitive advantage Outlining Your Marketing Plan Developing your marketing plan Defining your customers Articulating your online business strategy Describing Your Dream Team Presenting Financials Balancing dreams against reality Building on history to create a picture of the future Staying real with benchmarks Chapter 7 Getting the Legals Right Picking a Business Structure Independent and single Tea for two We’ve got company Matching the Name to the Game Using your own name Thinking about how others will find you Making sure you’re not on someone else’s patch Checking for trademarks Registering your business name Avoiding trouble Protecting Your Brand Registering trademarks Protecting other kinds of intellectual property Registering with the Powers That Be Getting that baby’s number Signing up for taxes (unavoidable, I’m afraid) Checking out what else you need Working with Contracts Understanding when you’re legally bound Dealing with standard form contracts Knowing what to look for in a contract Signing on the dotted line Negotiating Lease Contracts Part 3 Planning for Profit Chapter 8 Figuring Out Prices and Predicting Sales Choosing a Pricing Strategy Setting prices based on costs Setting prices based on competitors Setting prices based on perceived value Building a Hybrid-Pricing Plan Offering a premium product or service Cutting back the frills Getting creative with packages Charging different prices for the same thing Forming Your Final Plan of Attack Monitoring and Changing Your Price Building Your Sales Forecast Calculating hours in a working week Increasing sales with extra labour Predicting sales for a new business Predicting sales for an established business Creating Your Month-by-Month Forecast Chapter 9 Building Profit Projections Understanding the Cost of Your Sales Costing your service Costing items that you buy and sell Costing items that you make Forecasting Expenses Forecasting monthly expenses Forecasting expenses for the year ahead Allowing for loan repayments and interest Allowing for personal and company tax Building Profit Projections Step one: Starting with sales Step two: Adding variable costs Step three: Showing gross profit Step four: Adding expenses and revealing the bottom line Understanding the Whole Deal Factoring Personal Expenses into the Equation Chapter 10 Calculating Your Break-Even Point Identifying Your Tipping Point Understanding the concept of break-even Factoring personal expenses into the equation Putting theory into practice Changing Your Break-Even Point Looking at Things from a Cash Perspective Chapter 11 Creating Your Marketing Plan Laying Down the Elements of Your Plan Going to the heart of the matter Expressing your difference Defining Who Your Customers Are Analysing your customers Understanding what it is your customers really want Thinking creatively about channels Researching the market Analysing Your Competitors Setting Sales Targets Expressing sales targets in dollars and cents Expressing sales targets in other ways Building Sales Strategies Growing a brand that people want Pricing things right Defining your social media strategy Engaging customers and building trust Expanding Your Reach Offline Networking (yes, actually in person) Investing in public relations Creating marketing alliances Keeping Yourself Honest Comparing targets against actuals Measuring conversion rates Part 4 People Power Chapter 12 Making Service Your Business Creating a customer service culture Asking for feedback at every touchpoint Being prepared to listen Cultivating a positive workplace Going the Extra Mile Delivering on your promises, and more Understanding how to build trust Brainstorming how you can do better Appreciating the need for speed Continuing service after the sale is made Evaluating Your Performance Designing surveys Measuring your speed Reflecting on other service benchmarks Showing That You Care ‘I appreciate how you feel’ ‘I’ve done that sometimes!’ ‘Let me confirm what you just said’ Can I help you with anything else? Dealing with Complaints Why complaints are serious How to respond to complaints Chapter 13 Becoming an Employer Becoming an Employer: The First Steps Getting employees to fulfil their part of the deal Covering employees for accidents Ensuring your software is up to speed Subscribing to super Meeting Minimum Pay and Conditions Understanding what laws apply Choosing between part-time, full-time or casual Playing Safe and Playing Fair Being practical, not pedantic Blonde jokes are over Chapter 14 The Art of Management Drawing Up a Position Description Playing the Recruitment Game Reaching the best applicants Selling the position Picking the Best Asking the right questions Avoiding the wrong questions Matching people and positions Offering Someone a Job Sending an offer of employment Setting a probationary period Learning to Lead Daring to delegate Building a positive workplace Communicating every way you can Don’t Worry, Be Happy Rewarding with more than money Reviewing performance regularly Managing change Managing Difficult Employees Figuring out whether the problem is actually you Knowing when to draw the line Giving an employee a warning Terminating an employee Part 5 High Finance Chapter 15 Financing Your Business Budgeting Enough for Start-Up Creating a start-up budget Adding enough to live on Assessing how much you really need Separating Start-up Expenses from Operating Expenses Dealing with initial start-up expenses Putting theory into practice Sizing Up Your Finance Options Taking out a business loan Finding a new lease of life Getting hitched with chattel mortgage or hire purchase Canoodling with credit cards Seeking equity partners Choosing Your Lender Compare interest rates and loan fees Consider other interest(ing) factors Watch out for honeymoon periods and interest-free credit Chapter 16 Cooking the Books Figuring How Often to Do the Deed Doing your books just once in a while Doing your books regularly Choosing Software that Fits Creating Recordkeeping Systems Keeping track of income Tracking expenses Storing your business records Doing the bare basics Keeping Track of How Much You’re Owed Asking nicely Getting drastic Meeting Bookkeeping Deadlines Chapter 17 Understanding Financial Statements Discovering What Reports You Need (and When) Telling a Story with Your Profit & Loss Report Understanding how it all works Looking at sales Counting the costs Weighing up your expenses Taking a Snapshot with Your Balance Sheet Understanding the fine print Building documentation to support each figure Appreciating your net worth (someone has to, after all) Why Profit Doesn’t Always Mean Cash Gazing into the deep, black hole Looking through rose-coloured spectacles Doing the sums for sustainable growth Budgeting As If You Mean It Creating your first budget Recognising relationships Understanding the psychology of budgets Developing your budget in tune with your business plan Looking at Cashflow Chapter 18 Taming the Tax Tyrant Getting a Grip on GST Deciding whether to register or not Choosing your cashflow destiny Reporting for duty — how often? Coughing up Staying out of trouble Growing Some Recordkeeping Smarts Treating receipts with respect Cultivating your obsessive-compulsive streak Riding that (t)rusty chariot Declaring home office expenses Planning Ahead Getting an instant deduction Managing stock valuations Salting funds away into super Staying Out of Trouble Don’t claim what you can’t Be able to back up your story Avoid Personal Services rulings, if you can Monitor shareholder or director loans closely Don’t kid yourself about the cash economy Budgeting for Tax Planning for that difficult second year Putting funds aside Budgeting for GST and PAYG Fessing up if you’re short on cash Part 6 The Part of Tens Chapter 19 Ten Things to Do If You Hit Hard Times Work Out How Bad Things Really Are Get Breathing Space Innovate! Slash Those Expenses Pull Back Personal Spending Get Rid of Dead Weight Chase Up Overdue Accounts Run Special Offers Re-Jig Your Margins Don’t Be a Shag on a Rock Chapter 20 Ten Tips for Selling Your Business Start with a Game Plan Prepare Well in Advance Give Your Financials a Make-Over Get a Professional Valuation Go for the Max Plan for a Few Bills Woo the Buyer Do Due Diligence in Advance Be Straight Up with Employees Spread the Word Index EULA