A Guide to Business Plan Software

The first step in starting your own business is to create a business plan. A business plan will outline every aspect of your new business. It should include information on your loan applications, marketing, business purpose, balance sheet, summary of the business both quarterly and yearly, capital, personnel, operating procedures, leases, and liabilities. It should also include your financial reports such as cash flow statements, balance sheets and income statements. The purpose of your business plan is, not only to focus the direction of your business, but also act as a “brochure” for anyone who wants to find out about the intricacies of your business.

Creating a business plan can be difficult, and for those who have never written one before, can be confusing. There is a lot of information that goes into a business plan and it should cover everything related to your business from the assets of the company to the salaries of employees. When you are starting a business it is essential that you use business plan software. Business plan software is designed to help those, starting a business, to create a business plan that meets their needs and provides step by step directions, sample business plans, applications that merge Word and Excel documents into the software, and helps to make your business more marketable to financors, investors, and potential customers.

The top 5 business plan software applications over the last decade have been somewhat standard. They consist of Business Plan Pro, Biz Plan Builder, Biz Plan.com, Ultimate Business Plannner, and Plan Write for Business. Each one has different attributes that make it simple to create your own business plan. The costs can range from $30, for BizPlan.com, to $130 for Biz Plan Builder. The most consistently used of these products is the Business Plan Pro and it often ranks at the top of most consumer reviews as the number one business plan software on the market.

Business plan software will help you to create financial documents, compile data for financing applications, and there are even features in many programs that help the consumer develop marketing and advertising models as well as presentations for possible investors and venture capitalists. A good business plan software will also help you learn about standards for industry; manage your cash flow; create templates; and even show you comparisons as to how your business is doing in comparison with other businesses in your field, geographic region and size.

Business Plan Pro has been rated as the number one business plan software by the Wall Street Journal and has sales over 1 million units. Business Plan Pro comes with over 500 sample business plans that cover every type of business you could think of.

Biz Plan Builder offers the consumer a fill in the blank option where you will input data upon request and the program will input the data into the specific area to formulate your business plan.

Business Plan Maker offers an interview style approach where you will input data into the business plan software and the program will analyze the data and help you with “phrasing” and any other difficulties you may have.

One of the important aspects of picking a business plan software is not just the software but the help that you get from the merchant. You should find out how much, if any, access you have with customer support, who supplies the information, and whether the representative is an expert. Business plan software is a valuable resource but when you are confused their is no better resource than an actual person.

What are Angel Investors?

Angel investors are individuals, usually retired entrepreneurs and executives, that offer funding to start-up businesses. The term “Angel Investor” is somewhat fitting considering that an Angel investor is often the only way that a start-up company, or a business in financial difficulty, can survive the tough economic times or the initial stages of a business where expenses are mounting but revenue has not yet begun to make the business lucrative.

Studies have shown that businesses who have the backing of Angel investors are less likely to fail. The influx of capital, as well as the counseling, networking, and other resources that an angel investor can be the difference between a business thriving or going under. Angel investors in the United States account for 60 times more investing in businesses than venture capitalists. Where venture capitalists will only invest in large businesses, an angel investor is likely to invest in smaller business where they envision rapid growth.

An angel investor will often invest as much as $1 million to $2 million for a business with the average being around $450,000. In return an angel investor will require some type of debt or equity in the business. Angel investors also invest only in companies that they feel will have a high rate of return. The average angel investor is looking to have their investment produce returns of 10 times their initial contribution within 5 years. Investing in start-up businesses is a high risk venture and a such angel investors seek a high rate of return. This is due to the a low success rate where 20% – 30% of investments fail. So for every 5 investments that the angel investor contributes to they expect to lose on 4 of them and as a consequence angel investors seek high returns from those that succeed.

There are numerous ways to seek out angel investors. The first, and easiest, is to seek help from friends and family. This has its advantages because they are more likely to play off emotions and give you a loan. The disadvantages are numerous. Borrowing money from friends and family can often cause a disruption in the relationship. You will also only be able to get so much capital from using this route and lastly, you will not gain the experience, networking, and counseling that you can receive from a professional angel investor or someone retired from that industry.

Another option is to set up internet advertising and using internet resources to request angel investors. Many times angel investors are looking for investment opportunities, they don’t come to you. Many angel investors are retained simply because they saw your product or business model online and thought it was interesting and possibly lucrative.

You can also go directly to the angel investor yourself. Many angel investors have their own angel investor companies with websites and contact information looking for entrepreneurs to invest in.

When you meet with an angel investor you want to be prepared and open to discussion. Many angel investors will not only want a guarantee on their return, and securitization, but also control over the start-up business. You should consider this seriously. You will receive great benefits in your business decisions by someone who has a large stake in the business and has obviously done well in finance in the past. However, this is your business and you don’t want to give up absolute control of your company. You may want to percentage of ownership, mandatory consulting, or a number of other options.

Also, be prepared. Have you business plan concise and in working order to present you the angel investor. The best way to get an angel investor to contribute to your business is to show them that you have a direction and you know what your goals are and that they are attainable.

A Guide to Business Licenses

When you are starting your own business it is important that you are in compliance with all federal, state, county, and local laws; this included getting the appropriate permits and licenses that go along with your specific business.

There are numerous permits and business licenses that you will be required to retain before you can successfully start your own business. Whether you are a home based business or are starting your own brick and mortar store you will need to comply with these regulations.

One of the first business licenses that you will need to comply with are zoning ordinances. If you are starting a manufacturing facility you will want to make sure that your land is properly zoned, not only for manufacturing, but manufacturing of that specific type. Take into account the waste, equipment involved and hazardous conditions that may affect your ability to start your business in that area. Home bases businesses also need to meet zoning ordinances and covenants that run with the land. If your property is in residential zoning it may or may not allow a business to be operated from that location. Your local city clerk will be able to help you determine whether a specific area is appropriate for your business activity. You should also hire an expert to analyze your business operation to determine whether it is suitable.

Your State and the Federal government will also require licenses to perform certain types of businesses. The federal government requires licenses to practice a number of professions including: broadcasting; drug manufacturing; ground transportation; sale and manufacture of firearms; investing; manufacturing; and production of meat products.

State licenses are required to practice a number of professions including: accounting; law; medicine and dentistry; auctioneering; appraising; barbers; bill collectors; construction contractors; private security guards; real estate agents; and many more. You should consult your states business administration services department for information on what licenses you will need, depending on your profession.

In addition, when you start your own business, you will need to have a business name registered with the local and state. This can be done by going to the city clerks office and filing for a “Doing Business As” license. Depending on your location you may also be required to publish the “Doing Business As” name in a local publication to give notice to other parties of your intent. Depending on what type of business you are operating, you may also be required to register your business name with the Secretary of State in your jurisdiction. The “Doing Business As” license allows your business to be in the public record and is essentially the way the government knows of your existence. Most banks will require that you have a “Doing Business As” license in order to receive loans and open accounts in that institution. It is not a federal requirement that you trademark your business name but there are advantages to doing so, especially if your business takes off.

If you are in retail, or involved in any type of selling of goods, you will also be required to have a sellers permit. This permit is given out by the States and allows for you to collect sales tax from the sale of merchandise. You can receive your sellers permit from your State’s Board of Equalization, Sales Tax Commission, or other like entity in your State.

You will also need an Employer Identification Number. This acts as the businesses social security number and allows the federal, state, and local governments to tax your business.

There are numerous other permits and licenses that you may need to receive, depending on your business. These include: fire permits, health department permits, business permits, zoning, professional licenses, among others. A helpful resource when going about retaining these permits and licenses is to have a checklist. www.myownbusiness.org has a helpful checklist that you can use to make the process more manageable.

Internet Marketing Defined

Internet marketing is a broad term that envelops all forms of advertising and marketing that businesses, marketing companies, professionals, and individuals use to market their goods and services over the internet. Internet marketing can take the form of search engine marketing; search engine optimization; banner ads; e-mail advertising; and many other forms.

There are industries devoted solely to internet marketing. As the world of internet business grows, so do marketing and advertising on the internet. Just as companies will have billboards on major highways, companies will put banner ads on highly trafficked web sites. One of the most profitable ways to make money over the internet is to develop blogs, and other information sources and rely on advertising for income. The more traffic you have coming to your website the more money and more advertisers you will get.

Internet marketing isn’t always plain to the eye. Many forms of internet marketing involve the manipulation of search engines. This is called search engine marketing and optimization. Most of the time when individuals are looking for a particular service or product they won’t know exactly where to go so they rely on search engines such as Google, Yahoo, and Bing to help them find websites. Search engine optimization involves the creation of content on your website that will generate a positive result from the search engine. Most people who go to a search engine are going to look at the top 10 websites that are recommended. It is the job of search engine optimization to make sure that your website is at the top of the list. For example, if you want people looking for “retro clothing” to be directed to your site then your content should include the words “retro clothing” as many times as possible without damaging the integrity of your website.

There are entire corporations that do solely research on search engine optimization. They collect data on what words and sequences are inputted into search engines. They help e-businesses design their websites to generate maximum e-traffic.

There are advantages and disadvantages to e-commerce and internet marketing. Internet marketing is inexpensive in relation to tangible marketing. Where, in real life, their are only so many locations that you can advertise in their are literally infinite possibilities for internet marketing over the web. You will have to pay more money depending on the amount of traffic the website generates but either way it is still less expensive than billboards, television ads, and magazine ads. Internet marketing has its disadvantages in that most internet marketing ads are grouped with a number of other ads on the same page. Where in television and magazine advertising the ad is the only thing on the television or magazine page. In internet marketing there may be dozens of advertisements on one website and even though it is there it may not be seen by the audience.

In many situations internet marketing must comply with government regulations. The FCC, FTC and other government entities have taken on internet marketing in the same way as regular marketing techniques. It is a good idea to keep abreast of rules and regulations concerning these matters.

Sole Proprietorship vs LLC

There are a number of reasons to choose either a sole proprietorship or LLC not the least of which is distinctions in terms of taxation. Your decision in the matter is not final as a Sole Proprietorship can eventually become an LLC.

Sole Proprietorship

A sole proprietorship is a simple arrangement where the individual and business are one. The owner is responsible for all debts and assets and there are no distinctions between the entities. The owner is taxed for the business as a part of his or her individual assets. Since the owner has full ownership of the business assets and debts, excessive debts also imperil the personal assets of the owner, as there is not distinction under the law. A sole proprietorship is a good idea for those that do not require financing of immediate capital, do not intend to have many employees, can ensure continuity if the owner is deceased. One should be careful to make distinctions between business and personal assets in this arrangement and organize the two to ensure the protection of personal assets in the event of issues with the business.

LLC

An LLC is considered a flow-through entity when the income is not taxed as the income goes directly to the partners who are in turn, taxed on their income. This differs from a sole proprietorship in that the business assets are accounted for separately on an IRS K-1 form, yet still taxed from the owner’s personal income. An LLC benefits the owner by distinguishing business assets, which will give creditors better assurance that sufficient protection is in place to extend lines of credit to the business. A personal guarantee to repay is no longer necessary and LLCs allow for the addition of other partners that can leverage assets and split liabilities to help expand the business. Unlike a sole proprietorship, records of the business must be kept separate from personal finances, which provide better transparency for employees and potential investors.

LLCs can chose their classification for taxation, either as a partnership, corporation or separate entity, each subject to their own taxation laws. In terms of sole proprietorship vs LLC, this is a highly flexible benefit of LLCs, although sole proprietors will have a simplified tax structure as well, only requiring a self-employment tax form.

Sole Proprietorship vs LLC

The decision to choose either a sole proprietorship vs LLC depends on the needs of the owner. Those requiring complex payrolls systems and have a need to expand their business while attracting investment will want the legal legitimacy afforded by an LLC. Those that also seek to add partners and spread liability will certainly need an LLC. Tax benefits increase marginally as more individuals join an LLC and choose the appropriate method of taxation. Those that intend to remain small while avoiding payroll taxes and do not have a need for expansion or investment can remain a sole proprietorship. Those that do so accept the possibility of liabilities extending from the business and the potential for personal assets to mix with business assets.

Using a Business Continuity Plan

When you are starting your own business it is important to have a business plan set up to help direct the success of your business. What is also important, that many small businesses don’t consider, is a Business Continuity Plan. A Business Continuity Plan s set up for all contingency circumstances revolving around the success of your business. Many problems can occur through the course of running your own business, both natural and man made. If you are operating your own business it will only be a matter of time before your Business Continuity Plan will have to go into effect. It may happen tomorrow or it may happen 20 years from now. Many people believe there is no such thing as luck, only preparedness. When disaster hits you should have a Business Continuity Plan set up to prevent your business from going under.

Probably one of the most famous Business Continuity Plans resulted in the formation of the Bank of America. In 1904 Amadeo Giannini founded the Bank of Italy in San Francisco, California. The goal of the bank was to make small loans to immigrants who were denied by other banks. The Bank of Italy did not possess a fire proof safe and when the San Francisco earthquake occurred in 1906 Giannini was forced to return to the bank and take out all of the money before the fires reached the Bank of Italy. All of the other banking institutions in San Francisco had fire proof safes. Where the fireproof safes prevented the fire from consuming the contents of the safes they were incapable of being opened for days because they needed to cool down. After the earthquake Gianinni was the only person in the city of San Francisco who was capable of making loans to individuals for repairs. Because of his ability to finance the rebuilding of the city, Gianinni’s business thrived and eventually became, what is known today, as the Bank of America.

Where Gianinni’s Business Continuity Plan was not done on purpose this is a great example of how to prepare for disasters and the result of poor planning. The other banking institutions did not think about the result of an overheated safe, and for that reason, they were damaged financially.

When creating a Business Continuity Plan you should contemplate your business exposure to internal and external threats. The first step in creating a Business Continuity Plan should be to assess your business essential aspects and gauge what are the most important and fundamental operations of your business. These should be listed in order of priority and assess what backup, and contingency, arrangements should be made for the failure of each one.

There are many issues that can arise through the course of a business that can cause your business to suffer loss or become insolvent. These include: Theft, natural disasters, looting, damage to inventory and equipment, fire, changes in the financial market and many others.

You should prepare for each situation appropriately; prioritize certain aspects of your business over others; do cost analysis comparing the costs of the business continuity plan versus the value of the asset to the company. For example, the theft of inventory from the store may have less of an impact on your business than the destruction of your business due to fire.

Business continuity plans can consist of backup generators, security systems, backup machinery and equipment and insurance. Each business will have a different business continuity plan and you should consult with a specialist in these matters to assess how you should fully prepare for any worse case scenario.

LLC Formation

Direct Mail Advertising Benefits

Direct mail advertising is exactly what it sounds like, mailing advertising materials directly to consumers homes or places of work. Typically, direct mail advertising is used by targeting clients who are most likely to read the mail or respond to what is sent. Businesses will build a database of all sorts of types of consumers, separated by age, sex, income, or a whole host of other characteristics. Direct mail can also refer to joint mailers or “coupons”, such as the value-pack or local mailings attached to reading materials.

Organizations that use Direct Mail Advertising

Many different groups will use direct mail advertising for their advantage, but there seems to be consistent use among certain organizations. Political organizations heavily use direct mail advertising, as they try to solicit voters for elections or raise awareness of political events. Financial institutions are also heavy users of direct mail, as they will send credit card and mortgage advertisements to per-existing banking consumers.

While these groups are geared towards using direct marketing advertising, you should consider whether your business can benefit. Professional services, such as lawyer offices, medical services, or tax services often do not use direct mailing, especially as many regulations exist to limit the types of advertisements they can utilize.

How can Direct Mail Advertising help your business

1. Evaluate your business and targeted clients

Direct mail advertising does not work for all businesses, but can be helpful for numerous businesses, local, regional, or even national. Consider whether your clients will be likely to respond to mailings sent to your house and whether your business will be received positively and negatively. Some clients react negatively to what they consider “junk mail”, some react positively, and most will be neutral.

2. Consider your budget

Direct mail advertising will require some funds from your marketing budget in order to work. The amount you spend will highly depend on the materials you are sending, how many units you send, and whether you spend for access to targeted mailing databases from other companies. You should budget for your mailers to be sent multiple times, as it often takes a few attempts before certain clients will be reached and respond to them.

3. Start your Direct Mail Advertising campaign

You must determine who you can send your direct mail to. Many states have restrictions on who can receive advertisements through the mail, as consumers in these states have the right to be excluded. Always be aware of these rules before addressing your direct mail. Many companies provide you with names and locations of people who should not be contacted.

Your direct mail advertising should include the following: A response device, main letter, an envelope, and a brochure or other similar document.

A. The Response Device – You must provide a way for your consumer to contact you and further expand the relationship. At minimum, you must have your business name and contact information prominent in your mailer. You should also include return cards, forms, or any other way of getting your consumer to actively respond to your ad and contact you.

B. The Main Letter – You must address your consumer in a professional manner and engage them with interesting content and new information. This is the crux of your direct mail, so ensure that it will achieve maximum exposure and be received positively by your consumer base.

C. The Envelope – While an envelope may seem like a simple and obvious part of direct mail advertising, you must put time and effort into creating an envelope that will garner attention to your consumer. It is the first thing they will see when they get their mail and will determine whether they choose to open your mail. The envelope must match your business and the consumer’s expectations. Flashy and attention grabbing envelopes will grab attention, but may not be proper for all types of businesses. Consult with consumers and clients to determine what type of envelopes will get their attention.

D. The Brochure – Besides the above, you should also include something for your consumer to review with the hope that they keep for their reference. Brochures are one way to try to get a consumer to hold on to your mailer for an extended period of time, but you can also use things like refrigerator magnets, calenders, bookmarks, or other useful items that can be sent. While they may raise your overall costs, it is important that your direct mail remain with your consumer for an extended period of time, as they will review it when they need your services or products.

4. Evaluate whether your Direct Mail Advertising campaign is working

Direct mail advertising can be very difficult to evaluate, as you will not know when people receive the mailers, what they think of when they read it, and whether they find the mailers positive or negative. You should consider contacting some recipients and consumers who have become clients and ask them what they thought of them. Many clients will be very open and their feedback will be crucial in understanding the reception of your mailers.

Direct Mail Advertising and new technology

Recent technology has made much of direct mailing less popular than it has in the past. The ease of email, the transient nature of many residents, and the general dislike of “snail mail” by a younger generation has made targeted mailings seem out of date. Instead, targeted mailing is now generally used to reach older populations who do not use the internet or other communication technologies. Consider using internet advertising strategies if your target audience includes younger consumers.

Recent Opt-Out Laws

Many new laws in states across the country have begun to adopt Opt-Out laws, which require database companies to abide by the wishes of consumers who do not want their names on the lists and to receive direct mail advertising. Maintaining these lists while taking names off the list is a very difficult task and often leads to direct mail being sent that violates these regulations. Ensure that you comply with these opt out laws by using only reputable consumer lists from respectable companies. If you have further questions, contact a legal professional with experience in advertising regulation.

What Makes for Quality Direct Marketing?

Direct marketing is a form of marketing that has the business stay in direct contact with clients and consumers. There are numerous methods of contacting, especially considering the advances in technology that allow for open and easy communication. These include e-mails, text messages, tweeting, social networking, and traditional mailings. Direct marketing has the advantage of keeping your business’ name relevant to your client while also keeping them informed of changes to your business or new products that are available.

How to start Direct Marketing

1. Identify if Direct Marketing will help

Direct marketing should not be used by every business as not all clients want to be in continuing contact with your business and do not need to know about your updates or changes. Evaluate whether your products or services are suited for this type of marketing. Will consumers want you to contact them? There is a fine line between over saturating your client base with ads and giving them constructive information that they will be happy with.

2. Determine if your budget can afford Direct Marketing

Direct marketing usually does not require significant financial backing, unless you are physically contacting clients through the mail or other expensive services. Instead, direct marketing will require a large time commitment. Contacting by emails or other electronic media require that you or an employee consistently come up with fresh ideas and newly written information that can be sent to clients. Twitter accounts or social media require constant updates and review in order to best use their services. This should all be considered before committing your business to direct marketing strategies.

3. Establish your Direct Marketing plan

If you believe your business can benefit from direct marketing, begin to create your strategy and plan how to best use the services available. Come up with ideas that will help your direct marketing remain fresh and useful for consumers. Decide how much time you or other employees can spend on it, what messages they will try to put forth, and how to determine if it is successful. Once your plan is ready to start, stay committed to keep direct marketing unless you are sure it is not effective.

4. Effectuating your Direct Marketing plan

Once you have your plan ready, you finally must put it into play and assure that your message is reaching your target clients. When clients come to your business, ask them if they have seen your marketing techniques so that you can evaluate whether it is working or not. You may need to change some or all of your direct marketing strategy, so always be aware of what is working and what is not working whenever you can.

How to adapt Network Marketing to your clients needs

The most difficult part of Network Marketing is finding how to reach your clients and provide them with information they want and need. Try to update them about new products, exciting events at your company, or interesting news or informational articles that your clients may have interest. Only by keeping your direct marketing interesting and relevant will you see any success from your direct marketing strategy.

PLLC Services

PLLC

PLLC stands for Professional
Limited Liability Company that provides the services of a professional, such as
a lawyer, doctor or accountant. PLLC
arrangements are generally required by state law for any licensed professional
to provide services. A notable exception
is California, which prevents LLCs of any kind from providing professional
services from licensed individuals. A
PLLC may have multiple members, but all of the same profession.

Which professionals are required to form a PLLC?

–
Accountants

–
Architects

–
Dentists

–
Physicians

–
Lawyers

State laws will define which
professionals in each field will be qualified to join services in a PLLC. Related professionals may file for a PLLC
such as a PLLC of mental health professionals that constitutes a joint
practice.

How is a PLLC formed?

The steps to from a PLLC are
similar to a typical LLC formation, with a few notable exceptions. For one, most states will require signature
and license numbers of the professional incorporating the PLLC. There may also be a need to provide a copy of
the professional’s license to ascertain that the individual is indeed eligible
to provide professional services.
Generally, the formation of a PLLC must be announced in two newspapers
for six consecutive weeks.

Partners in PLLCs

Partnership in PLLCs are usually limited
to actual professionals providing services, retired professionals that provided
services under the PLLC and holders of the estate of a former PLLC member. Even then, they may only have shares in the
PLLC two years after the date of death.
These distinctions vary by state and a specialized corporate lawyer will
be able to explain the distinction related to taxation, formation and ownership
of a PLLC.

Taxation of a PLLC

After the formation of a PLLC,
taxation usually follows the corporate taxation guidelines. Some PLLCs, such as those that offer services
in health, law and others have “Qualified Personal Service Corporation”
classification and will pay a flat tax of 35% rather than a variable corporate
income tax rate. Other PLLC arrangements
include the S corporation status that allows for flow-through income taxation. A PLLC is considered a flow-through entity
when the income is not taxed as the income goes directly to the partners who
are in turn, taxed on their income.
Taxing an LCC that serves as a flow through entity would constitute
double taxation and therefore would be a non-taxable entity.

PPLC lawyers

When forming a PLLC, you may find
the services of a PPLC lawyer necessary to understand state restrictions on
PPLC formation and membership. These
laws vary by state and a local business lawyer will be able to inform you on
such factors as which professionals must form PPLC, what protections a PLLC
ensures, and how a PLLC can be taxed, especially related to your
circumstances. There will be associated
fees with PLCC formation, in addition to relevant lawyer fees from seeking
legal assistance through the PPLC formation process.