All of us have been the victims of spam at least once. Having our inboxes bombarded with unwanted spam messages that we did not sign up for is almost like an invasion of privacy. No one wants to be spammed, but most of us can’t gain away from it. Once you have taken the time to set up your new microscopic business, you must also think about setting up a spam defense as well. Spam messages can flood your inbox and cause you to miss considerable messages. A critical concern for every small business is email security. Spam messages is rapidly becoming a number one nuisance for internet users. Viruses are very easily spread through spam. As a business owner, you can’t afford to have your business system compromised. I have a few simple tips on how to defend your business against spam.
Education is the key
Advise your current employees not to fill out any sort of personal information from email messages. No matter how legitimate the email may be, don’t fall for it. Identity thieves are constantly trying to find victims that are easily tricked into giving away their financial narrative information or social security number. If the company is legitimate, they will never ask you for this sensitive type of information through an email. Professional thieves also like to use websites to lure victims. Clicking onto a link in an email that claims to be from a bank or other financial institution is an easy device to get scammed. If one employee responds to this type of trick, then the entire company has just been placed at risk.
Don’t go phishing One of the most popular internet scams is phishing. Employees should know how to identify them and how to discontinue away from them. Thieves use several methods to gain access to sensitive information through phishing scams. They employ pop up messages and spurious websites. Once an unsuspecting employee enters their systems, the identity thief will then begin to extract credit card numbers, bank fable numbers, and social security numbers. Most of these scams can be easily detected by the constant use of grammatical errors or improper business language.
Don’t be so lenient
Usually in small businesses, company employees are given leniency when it comes to company access. Allowing an employee to have full access all of the time can open your small business up to unwanted spam attacks. For instance, if your employee has a work computer that they are able to take home daily then they may use it for non business activity. Regular browsing of the internet on a company computer is not always a great idea. The internet is loaded with undesirable information and viruses. Once, an employee’s company laptop becomes infected with a virus and then connects to the entire business network it could contaminate any device on the same network. Safeguard your business by placing some restrictions on business equipment.
Follow these few steps in protecting your small business from spam. Prevention is the best design to save yourself from frustration and trouble. Instead of having to spend all of your available time fixing a problem, discontinuance it from happening ahead of time. Everyone hates receiving spam, but it is a problem that is not going away anytime soon.
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Filed under Small Business Pbx Systems by on May 17th, 2011. Comment. 
The introduction of smoking ban laws in various states across the United States needs to be re-examined. While the laws cannot be repealed entirely because of opposition from anti-smoking lobbyists, the laws do need to be altered. The smoking bans are causing many unseen problems and trample the rights of citizens by taking away the right to determine and distress business owners by lowering their revenue. Particularly affected by this ban are bars, taverns, and restaurants. According to the website WebMD, one out of every five American adults is a cigarette smoker (Hendrick, 2008). In pure numbers, that means there are 43.4 million smokers in the United States (Kane, 2009). In an economy that is already struggling, the decrease in profit caused by the ban could make the difference between a business surviving the recession or having to close its doors. More than thirty states now have smoking bans (United States, 2008). Fortunately, there are solutions that may allow a middle ground to be reached between those who oppose the law and those who support it.
Where the Loss Occurs
Bars lose some revenue in the lack of cigarette sales, but that only accounts for a small percentage of the loss. The main profit loss comes from the lack of add-on sales as well as fewer customers overall. In the case of bars, many smokers feel that a large part of their enjoyment of a night out requires their ability to smoke while doing other things, like playing pool. When faced with being unable to enjoy themselves as they wish, many simply do not go out. Concerning restaurants, people who smoke tend to linger over meals and drink more instead of rushing out to their cars for an after-dinner smoke. The ban brings about a significant cut of the income for many restaurants through extra food and beverage sales. If the smoker stays and relaxes with his dining group, then he will perhaps order dessert, snacks and beverages. There is positive evidence that smoking bans lower the percentage of beer and alcohol consumption. The studies also clearly present a direct reduction in sales for restaurants and bar establishments in particular, which are caused by smoking bans. The banning laws have serious economic consequences for these types of businesses (Gallet & Eastman, 2007).
Most bar and restaurant owners feel slated to lose a large amount of their income – some bar owners are claiming an average of up to a 40% loss in sales across the country. However, some establishments describe even higher losses. For most of these itsy-bitsy businesses, it is the equivalent of taking a 40 percent cut on a paycheck for the same amount of hours of work each week (Reisinger, 2008).
Charities are Pinched
In Louisville Kentucky, even charities are feeling a pinch caused by the smoking ban. According to James Doolin, a man who runs a bingo-for-charity operation, attendance is down 30% since the ban was passed. The food and beverage sales at these events have plummeted because of the lack of attendance. Many other Bingo parlors in the area have just ignored the laws and fines that they have incurred because of it. They are hoping for positive response to pending lawsuits that question whether the ban is constitutional (Schnyder, 2007).
Tourism Suffers
Even business owners in Hawaii, whose smoking patrons do not have to stand in the cold to abide by the law, are wondering if they are feeling a pinch from the ban. Tourism is down 6%, with an even higher concentration of loss in tourists from Japan. The Japanese tourism is down 12%. Because this loss followed closely late the smoking ban, coupled with the fact that Japan has a much higher smoker rate than the United States, the tourism trade is wondering if they have isolated some of their clients (Berg, 2007).
Completely Unfair in Colorado
The smoking bans vary from state to state. Some have provisions that allow exceptions in the law. Casinos in Colorado reported a 2 million dollar loss during the first month of the institution of the smoking ban. The casinos claimed that 30% of their patrons smoke and they expected to see a continued downward trend in income (Casino, 2008). By June 1, 2006, the law had been amended to allow smoking in casinos, but continued to ban smoking in restaurants and bars. Outraged business owners are currently fighting for what they feel are equal rights. In this location, small tavern owners claim to have lost 80% of their revenue and are prepared to demonstrate proof in court (Smoking ban, 2008).
Other Health Areas May Suffer from the Ban
In addition to the financial issues caused by the ban, it is suspected that the laws are causing other types of problems. A new watch will soon appear in the Journal of Public Economics concerning this issue. The study states that fatal accidents involving drunken driving increased significantly in states that had passed smoking bans after the bans were passed. It is theorized that the cause of this is smokers attempting to drive to establishments that allow both drinking and smoking. In many cases, the businesses are far away from the smoker’s home or the location where the smoker starts drinking (Study, 2008). Overall, the laws are causing more problems than they are creating solutions.
Unfair to Owners
Business owners invest large sums of personal money into a business. Many take out loans and mortgages to start or improve their businesses and bag the “American Dream.” In addition to the obvious investments, business owners must adhere to structural codes, zoning, permits, licenses, inspections, and numerous other unseen costs which are enforced by the government that bite into profit margins. Ultimately, a business owner owns the business building and grounds in the same way a homeowner owns his maintain home. Owners of these establishments should be allowed to determine what activities are allowed inside these buildings, provided that inherent laws are not broken. The rights of those choices should be comparable to what people are allowed to do in their own homes. If a customer base is viewed as a “guest,” it would be the equivalent of whether or not a guest is allowed to smoke in an individual’s home. Some businesses, such as shopping malls, would ultimately decide against allowing smoking. Other businesses rely on their smoking customer base to provide a large portion of their income.
Ohio Business Owners Skirt the Law
In fact, many owners have taken exactly the “business as home” approach in finding ways around the smoking ban in Ohio. These bars are claiming to be closed to the public for special private functions that range from fundraisers for a riding stable to celebrations of celebrity birthdays. The ban specifically excludes private functions, so bar and restaurant owners are using this loophole as an attempt to make up for lost business. The doors are locked during these events; however anyone who knocks on the door and asks to join the party is usually admitted with the understanding that they will be attending a charity event (Toledo Bars, 2004).
The bars were too reliant on the loophole, however, with the creation of “Taverns for Tots,” which was a private charity organization. Between 35 and 60 bars were participating in events with the club, when a federal assume closed it down because he felt it was a deliberate ploy to fetch around the smoking ban and was therefore not a legitimate exemption (Troy, 2004). In addition to private social functions, certain other establishments received protection from the ban in Ohio, but the exemptions are strict and few (Spy Illustration 2).
The November 2, 2004 smoking ban was passed in Ohio by a slim margin of 51.4% in favor to 48.6% against it. As demonstrated by the aforementioned “private parties,” many businesses and smokers have continued to struggle against it since that time, trying to gather a solution that will satisfy most parties involved (Vezner, 2004). Unfortunately for these businesses, loopholes will be discovered and restrictions will be tightened as time passes.
Strict Laws with a Variety of Law Breakers
However, bars and restaurants are not the only guilty parties of disobeying the law. There have also been numerous complaints about certain elementary schools, auto factories and even the humane society (McKinnon 2007). Apparently, there are many smokers who are quietly disagreeing with the ban and are simply choosing to ignore it.
Some Just Pay the Stunning or Just Ignore It Altogether
Ohio status restrictions forbid so much as an ashtray either inside or outside the building and require all businesses to post no-smoking signs. Failure to comply with these codes can and will result in cumulative fines (State of Ohio, 2006). Many restaurant and bar owners have simply refused to put up the unattractive signs. Several have also continued to provide ashtrays, sometimes discreetly, sometimes not (McKinnon, 2007).
Many businesses that would otherwise be affected by the law are instead choosing to ignore it or directly violate it. In Cleveland, Ohio, bar and restaurant owners are taking a more low-profile approach. Some spokespeople in the area feel that the law in not enforceable and they may be right. Two years after the ban, in Warren County, Ohio, not a single comely has been imposed. In Dayton, Ohio, only five percent of investigations have resulted in fines. The fines do not cover the enforcement costs and the state has to quit within budget for the program (After 2, 2008). Nick Falls, a local bar owner in Toledo, Ohio, refuses to police customers who smoke. He states “I don’t like country music, so I don’t go to country bars. If you don’t like smoking, don’t go to a smoking bar” (McKinnon, 2007).
Other areas of the country are more flamboyant in their rebellion. At The Wearisome Ant Tavern in Colorado Springs, Colorado, a great sign on the side of the building bears the slogan “Smoking. My business. My customers. Our choice” (Lawrence, 2007). At another nearby establishment in Colorado Springs, the owner has decided to stage a protest. Anyone who would like to smoke inside the bar is allowed to – provided that they pay a $1 donation to serve pay any violation fines that are incurred if the bar gets caught allowing smoking. Fines in that area of the country start at $200 and go up to $500. These two bars and several others in the site have decided that they will fight every single ticket given for ban infractions that is written against them. In short, obeying the law is turning out to be more expensive for these business owners than breaking it would be (Lane, 2007).
However, some business owners may have taken the rebellion too far. One business owner in Colorado hung up a sign stating that the bar would continue to allow smoking in the establishment. This act, coupled with numerous violations that have been documented with the state of Colorado, may cause the business to lose its liquor license (Denny, 2009). Direct disobedience will ultimately catch up with the perpetrator in the end.
Frustration at the Law Spurs a Solution from Germany
Smoking bans are popping up all over the earth and are causing many of the same problems world-wide. Some small business owners react dramatically when faced with a law that will slice off a large portion of their revenue. A tavern owner in lower Saxony, Germany, took a dramatic come in his solution to the smoking ban. He sawed three holes in the wall. These he deemed “smoking points.” The three holes are cut in a manner that reminds one of a set of stocks from the Middle Ages: one hole for the head and one for each hand. However, the patron who sticks his head through the hole is far from being restrained. The holes are carefully padded for comfort and allow the user to smoke “outside” without having to leave the warmth of the indoors. Hanging over the holes is a sign that bears instruction for their use (Restaurateur, 2008). While this act represents a humorous and harmless rebellion, most smokers would probably not be willing to stick their head through the wall for a smoke in the United States. In addition, some region laws had the forethought to require smokers to stay a certain distance from a building (Site of Ohio, 2006). Most business owners in the United States do not react so flippantly when laws are passed, but instead try to find other creative, and often successful, solutions to the problem.
Automobiles are Still Fair Game
At least one business owner with an entrepreneur’s spirit decided to find away around the ban by making his business mobile. The creation of the Mobile Cigar Lounge Company in Tampa, Florida is truly inspired. Because there are no bans on smoking in vehicles, the company has created a bar and smoking lounge on wheels. The lounge is made from the base of a trailer that has been completely customized inside. Leather seats and leaded crystal fixtures compliment the interior while a “cigarista” is present to provide mixed drinks and assist smokers in their choice of cigars. The posh atmosphere is extremely luxurious. It appears to be primarily marketed toward private parties and business meetings. Rental prices start at $475 per hour and that does include a itsy-bitsy selection of mid-level cigars (Luxury, 2009).
There are a couple of downsides to this solution. The first problem is that there is no pool table, no dart board and no position to dance, which are things that some customers require in their drinking experience. The second problem with this solution is that the expense is unrealistic for the average bar patron. However, with some alterations, the business could work for a larger client putrid. For example, the bar could simply pick people up at their homes and take reservations until the bar was full. Unfortunately, most patrons might not like the idea of being stuck in a vehicle until the mobile bar is able to drop them off.
There are also several problems when considering this option from a business owner’s standpoint. The first is the immense expense of setting up and running the operation, including the expense of gas and a driver. A bar owner, could, theoretically, sell his land based business and trade the profit for one of these “bars on wheels,” however that is a great gamble.
The bright side with this option is that it might lessen drunk drivers, since the bar could just drop the drunken patrons off at home. Probably the biggest obstacle is the fact that it may be difficult to obtain a mobile liquor license. Even if an owner found a way to make this option work, there is a chance that fresh legislation could shut down the operation and the owner would be stuck with a bunch of equipment that was useless.
One final thing to consider with this solution is the anti-smoking lobbyists are already trying to put a stop to this loophole. In Washington, legislation is being considered that would fine individuals who smoke in an automobile in which there are riders under the age of 18 present. This is but one step away from banning smoking in automobiles entirely (Nakayama, 2008).
Hospitality Proposes Ventilation
The hospitality industry in British Columbia suggests that bans are not necessary as long as people are protected from the second hand smoke. The claim states that better ventilation is the solution to the problem. The group in question has proposed engineered ventilation systems that will reduce the second-hand smoke consumption of the average person to less than two cigarettes per year. A proposal has been submitted to the review board by hopeful bar and restaurant owners who fear the loss of income from the ban (Bars, 1999).
The problem with this option is that many places have already tried it without success. Ventilation systems are usually honest not sufficient enough to remove the second-hand smoke. One of the reasons is because there may be more smokers present in an status than the system was designed for. In addition, problems are likely to arise when a system breaks down and the owner refuses to fix it, which is something that is a realistic possibility. However, there are some solutions that have shown indications of success.
California Heat
The first region to ban smoking in public places in the United States was California in 1998 (Smoking, 2009). As expected, California businesses began to adapt. Many bars have installed overhead heat lamps on patios. These are turned on when the weather turns chill. Some of the bars are like huge balconies. The roof has wide slats that hold the heat lamps. Between the lamps are openings to the sky above. Somehow, the lamps withhold the patrons comfortably warm at night when temperatures drop. Unfortunately, this solution would only work in states that have naturally warmer climates or the heating bill would be unrealistically high. In addition, some states have specific laws stating that smoking areas cannot be attached to a building (Space of Ohio, 2006). However, tropical or other warm weather states can build very attractive and successful outdoor additions that are currently satisfying all parties.
Iowa Continues the Remodeling Trend
Bar and restaurant owners across the country continue to scramble to bag ways around the ban that will allow their businesses to survive in an already harsh economy. In Iowa, many bar owners are installing giant windows in existing buildings that are kept open to create a “patio” that will allow the business owner to comply to state smoking regulations while preserving a customer base. In one particular case, a bar called “The Cabaret,” the manager claims that the fancy windowed extension and indoor renovations were mandatory if the business was going to stay open. He claims that the law had the ability to bankrupt the business if he had not found a solution. The bar spent a colossal deal of money installing new heating systems (Smoking Shacks, 2009). Heating a building that size in freezing temperatures must be an enormous expense, which illustrates how much money the bars must be losing from the smoking ban.
Some business owners hesitate at this solution, because of the investment required. A way to give these owners more confidence would be to freeze the bans, guaranteeing that stricter laws would not be passed for a certain period of time. This would allow owners to weigh the costs and benefits of such a large investment against a guaranteed amount of time in which they would be allowed to use it. In addition, most of those who support the ban seem satisfied with this solution (McPherson, 2008).
Licensing
Although ex-business owner Christa Farnum is a non-smoker, she is against infringing on the rights of business owners to make the rules in their own establishment. She extinct to own a sandwich shop in Michigan that closed two years ago which was non-smoking. The owners had decided to make the establishment non-smoking, but not because it was forced by law. Despite its non-smoking policy, the restaurant still provided ashtrays outside and a smoking balcony – two things that are now forbidden by some spot smoking bans (State of Ohio, 2006).
She stated that she would never want to have that choice taken from others because operating a business is a difficult, expensive, and delicate thing. She went on to say that the fresh laws in do make things difficult and further restrictions only race the risk of eliminating even more small businesses. She felt that a good middle ground would be a license, similar to a liquor license, which could be purchased for a fee from the state. Like a liquor license, the number of these permits could be limited by county based on population. That solution, she felt, should satisfy both sides. The non-smokers would have a place to go that would be smoke free and the smokers would have a position to enjoy themselves also. The business might then balance out between the establishments (personal communication, January 20, 2009).
Sometimes Making a Plea Makes a Difference
A Maryland bar made an appeal to the status for a waiver from the smoking ban. The bar is situated near the state border and a 15 miniature drive takes patrons to a different state where smoking in public places is still legal. The bar was literally sitting empty, but for its employees. After four months of appeals and proving huge losses in revenue, the dwelling of Maryland granted them a waiver. Unfortunately, the waiver expires in 2011, but the bar has been given respite for the time being (McPherson, 2008).
This solution will only work for a tiny minority. Giving waivers to everyone would defeat the purpose of the bans. Lawmakers and authority groups are unlikely to shun the laws for most businesses because then they are jeopardizing their own jobs and positions.
No such quarter has been given in Toledo, Ohio. A smoker need only cross the set line into Michigan to be allowed to smoke while drinking.
Virginia Makes a Stand
There are more concerns beyond those of bar and restaurant owners. In Virginia, the smoking ban law was effectively turned down recently. The reason that the Republican-dominated House of Delegates turned down the law was simple: Virginia farms tobacco. A law of this nature would seriously affect the incomes of the constituents of these lawmakers, so any laws passed regarding a smoking ban have to be considered carefully. Although lobbyists for the ban presented several versions of smoking bans, the result of their efforts still resulted in decision that would mean no ban for Virginia residents (Kumar, 2008). When considering laws like smoking bans, the effects of these laws on the economy needs to be considered more carefully than what has historically occurred. States should seek, not just to their own manufacturing and agriculture, but to those of other states that bring profit to the country overall.
Fighting City Hall
Small business owners are banding together all over the country to fight smoking ban legislation. In addition to the groups in Colorado, there are other groups nationwide that are currently trying to find laws that will protect them from this ban (Reisinger, 2008). . Some, like “Freedom Fighters for All Citizens of Iowa” have become very active, holding public meetings in addition to using legal aid to fight the bans. The standpoint musty by this group is that the smoking ban law is unconstitutional, because in Colorado casinos are still allowed to have indoor smoking while other businesses are not. Casinos receive special exclusion from the law (Denny, 2009).
In Nevada, a judge granted an injunction of the law for bars in Las Vegas. While smoking can still cause a civil violation for the smoker in the amount of $100, taverns and bars need only post no smoking signs and remove ashtrays. Casinos are still fair smoking areas, as they were unaffected by the smoking-ban laws (Nevada, 2007).
In Washington, an American Legion post has brought a lawsuit against the state. After being issued a violation and fine, the group decided it was time to fight the ban. The group feels that it is fighting for the freedom of the people of the United States (Lawsuit, 2006).
There is currently legislation in the Senate that will allow smoking in family owned businesses and another in the House of Representatives that would allow certain bars to be exempt from the law. Anti-smoking lobbyists, such as the American Cancer Society, are vigorously fighting this legislation and are in fact pushing for even stricter smoking laws (After 2, 2008). Apt officials may be able to find a balance through one of these proposals that will balance everyone’s rights: both that of the non-smoker to breath smoke-free air and the businesses who rely on the revenue that smoking bring in.
E-cigarettes: Making Everyone Happy for Now
A clever inventor has come up with what many feel might solve the problem from all sides. The product is called an e-cigarette. Early versions resembled the plastic casing on an ink pen. The more current version looks like a plastic cigarette that even lights up at the end. The product replaces the smoke with water vapors that flow through a nicotine cartridge, virtually eliminating smoke entirely while still delivering nicotine to the smoker. The hardcore smoker will continue to receive more satisfaction from this product than patches or gum because the product satisfies the oral fixation. Also satisfied is the need for the feel of the smoke in the smoker’s mouth. The water vapor strongly resembles the look and feel of smoke, but dissipates instantly. Trials have shown that patrons in bars and restaurants do not even know when one of these e-cigarettes, or “hydros,” are being used. The product is battery operated and rechargeable and contains no tar and a lot less chemicals. It delivers the nicotine that a smoker craves along with the feelings and actions associated with smoking. There is also no need for an ashtray, since there is no ash and nothing is burning. In addition, because no smoke is given off, the product is completely legal (Conneen, 2008).
One of the companies that manufacturers this product markets under the name “Crown 7″. The product is available in several styles to meet the needs of all smokers. Devices come in cigarette, cigar and pipe styles. The company claims that its product is smokeless, so the user’s garments are preserved from the smell of smoke. The cigarette sells for $74.95 in the United States. Orders are primarily filled through the internet. The product works by passing water vapor through a nicotine cartridge. The cartridges cost about $10 for a pack of 5 and each cartridge equals about 2 packs of cigarettes. This means that the cost for a carton’s worth of nicotine is about $10 when using the e-cigarette. This means a huge savings for smokers when compared to $4.95 for one pack of Marlboros in Ohio (Personal communication, K&K Gas Station, 2009). To add to the package, the e-cigarette is reportedly distinguished healthier for the smoker and those around him (Crown 7, 2009).
The nicotine delivered through each puff is almost twice that of normal cigarettes, so smokers often feel satisfied a little faster. In addition to the nicotine flavor, there are also designer flavors available for the cartridges (see illustration 3). The manufacturer is continuing to accomplish new styles of smoking devices and cartridge flavors and is currently hoping to expand its business nationwide with retailers. The product has received a lot of attention; news groups from all over the country are featuring stories about the product (Crown 7, 2009).
The downside of the product will be that smokers will be puffing on a piece of plastic which will feel a little different. In addition, smokers will likely have to justify the product when using it in a new area. However, this solution just might satisfy everyone involved. Naysayers of the product are likely to point to the fact that nicotine addictions are still unhealthy. However, the key argument of supporters of the smoking bans seems to be the dangers of second hand smoke. This product solves the second hand smoke problem and provides a healthier alternative for the smoker as well. Only the individual smoker will be able to determine whether or not the e-cigarette is satisfying enough to use.
Final Thoughts
It is simply dreadful business to disallow an establishment to offer a smoking area to its employees and smoking customers. These bans are crippling to a falling economy in addition to taking away one more freedom of choice. Members of the public must ask themselves: where is the line between protecting public health and infringing on other’s rights? It seems that there must be a common ground that will allow everyone involved to be disclose.
Many people, even non-smokers, feel that the smoking ban laws are freedom-hostile. These individuals feel that the laws not only infringe on the rights of people who smoke, but more specifically that the laws infringe on the rights of people to do business. One must ask where the legislation that is designed for an individual’s “own good” will close. Yet, those in favor of the bans wish to further push the issue, even to encompass personal vehicles. These lobbyists will continue until cigarette usage becomes entirely illegal (After 2, 2008). Both sides must relent to some degree and find a middle ground where all can be blissful. Some proposals seem outlandish, but some have solid logic tedious them that may succeed in finding middle ground if only both sides of the argument will slightly bend.
References:
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State of Ohio Chapter 3794: Smoking Ban. (2006, December 7, 2006). Ohio Revised Code, Lawriter Ohio Laws and Rules. Retrieved on January 17, 2008 from http://codes.ohio.gov/orc/3794
Study: Banning Smoking increases drunk driving. (2008, April). Fox News. Retrieved on January 16, 2009 from http://www.foxnews.com/story/0,2933,347751,00.html
Smoking bans and restrictions around the world. (2009). The Center for Disease Control. Retrieved on January 26, 2009 from http://www.cbc.ca/news/interactives/map-globalsmokingbans/index.html
Smoking Shelters. (2009). Gilmore-Kramer Company. Retrieved January 20, 2009 from http://www.gilmorekramer.com/more_info/smoking_shelters/smoking_shelters.shtml? OVRAW=smoking%20shelter&OVKEY=smoking%20shelter&OVMTC=standard&OVADID=4201389011&OVKWID=11512747511
Smoking Shelters. (2009). Portafab Modular Building Systems. Retrieved January 20, 2009 from http://www.portafab.com/smoking-shelters.shtml? utm_source=Yahoo&utm_medium=cpc
State of Ohio Chapter 3794: Smoking Ban. (2006, December 7, 2006). Ohio Revised Code, Lawriter Ohio Laws and Rules. Retrieved on January 17, 2008 from http://codes.ohio.gov/orc/3794
Toledo bars evade smoking ban. (2004, March 17). Toledo Talk. Retrieved on January 17, 2009 from http://www.toledotalk.com/cgi-bin/comments.pl/12/546
United States: public place smoking bans. (2008, February 29). Position Health Facts. Retrieved on January 26, 2009 from http://www.statehealthfacts.org/profileind.jsp? cmp=49&cat=2&rgn=1&ind=86⊂=24
Vezner, Tad. (2004, November 4). Owners of bars/restaurants in Toledo, Ohio, mull new smoking ban. The Toledo Blade. Retrieved on January 16, 2009 from http://www.highbeam.com/doc/1G1-124095601.html
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INTRODUCTION
Volumes of books and publications have been written on business plan writing. Unfortunately, not all of it is in total agreement, adding further to the confusion. The goal of this document is to condense and simplify this information to help you prepare an effective and sales-winning business conception. Whether you write the plan yourself or seek out professional attend, you will still need to complete this step…there are no shortcuts to this process. This helps to explain why so many small businesses fail to invest the time and effort needed to do a business plan.
It is suggested that you take the time to read this material in its entirety. Every effort has been made to distill the information down to it simplest form for easy reading. Despite this exertion, the following is still somewhat lengthy and will require a real commitment on your part to complete. However; the time and effort you set aside forth to complete this document will put you one step closer to realizing your business goals and objectives. It all begins or ends here. The choice is yours.
WHY A BUSINESS PLAN?
Developing a business plan is like having a road map to a new destination– it’s designed to salvage you there safety, using the most direct route. Likewise, your business plan is a road map to guide you to your goal… and eventual success. Without it, you may end up on a wrong road that can take you away from your original just, and to financial uncertainty.
What goes into developing a sound business plan?
There are two prime ingredients needed to develop a successful business plan: time and effort. All too often, many individuals plunge headlong into a business venture without taking the time to judge through the process. In many instances, vital details are overlooked that can jeopardize the success of the project. By taking the time to think the project through, you can anticipate and plan for obstacles and hurtles that might otherwise sideline you venture. In this way, you can develop a business plan that can navigate you around problems and on to your goal without depleting your resources.
The primary task in developing a business plan is to determine what steps, strategies, tools, personnel and financing must be in place to reach your goal…and in what time frame. This is not easy to do. It requires you to project yourself into the future, visualizing each step required to reach your goal. You are in fact designing a diagram that details each procedure in the project, much in the same way an architect designs a building. A review of the steps involved in the design and construction of a home will provide an excellent overview of what it takes to get a successful business thought.
Location, Location, Location
All construction projects begin with selection of a location or building site. Poor situation selection can result in a number of problems, including increased construction costs, limited availability of skilled labor and materials and possible zoning issues. The same is true of business. Where you locate your business will play a major role in shaping the success of the venture. It will determine the size and makeup of your market, the quality and availability of the support services you will need, and long-term growth potential of your venture. These issues must be reviewed and addressed in your business concept.
Codes and Licenses
Before any building project takes shape, the architect or engineer must determine what codes restrictions must be satisfied, whether local or national. These might include zoning restrictions, environmental concerns and building code requirements. The same is proper in business. You must first determine what permits, licensing or certificates are required for you to conduct business at your desired location…whether it’s downtown Nashville or a URL address on the Internet. Again, your business plan should also disclose any and all licensing, permits or certification needed to conduct business, and what steps you have taken to satisfy these requirements.
Building Materials
Careful selection of building materials is vital to the success of any construction project. For example, virtually any building can withstand a wind load of 3 – 5 miles per hour. On the other hand, a structure made of questionable building materials may collapse under the force of 70-mph winds. Likewise in business, the success of any venture is dependent largely on the quality and scope of the products or services offered. When faced with little or no competition, a business might do well for a time. On the other hand, this same business may falter from the weight of a serious competitor. For this reason, your business plan should detail the competitive climate of your intended market and how well your products and services stack up to the competition. Additionally, your thought should also outline the steps or strategies that will be implemented to maintain a competitive standing in the marketplace.
Construction Timetable
A construction timetable or schedule is critical to the success of any building project. It is used to coordinate each construction phase in order to ensure timely and on-budget completion of the project. The same is apt of a business plan. It should detail each phase of the business venture along a specific timeline. This will enable you and investors to establishment a budget for the project and choose specific goals or benchmarks to evaluate the success of the venture. Is the venture time-sensitive or is it a long-term endeavor? Your business plan should clearly spell out the timetable of the your venture. This will help prevent premature expectations on the part of potential investors or lenders.
Skilled Labor
A wide variety of skilled and certified labor is required to compose a home. Is this true of your venture? Do you possess all the skill and experience needed to develop a success of your project? Will you need to hire the services of consultants or other skilled professionals to ensure the success of your venture? In either case, your business understanding should detail the experience and skills you bring to this project and what additional help, if any, is required for this venture to reach its intended goals.
Financing
No construction project, no matter how well designed or conceived, can survive without proper budgeting and adequate financing. Your business venture is no exception. A well-designed business plan should contain a detailed spreadsheet outlining monthly cash flow and anticipated sales over a two-, three- or five-year period. The length of the time period will depend on the kind of financing you are seeking and your repayment schedule. For example, if you are seeking a loan with five-year terms and your spreadsheet calculations present a healthy profit margin and steady growth after two years, you may not need to have five-year projections in your plan.
Putting it all together
On the following pages we will survey, in greater detail, each building step in designing a successful business plan. This will be accomplished using a workbook designed to collect all the information and details needed to complete the business opinion. It is suggested that you not attempt to complete the interview in one sitting. Pick your time. In all likelihood, you will need to research or give more thought to some of the questions before answering. There is no shortcut to this process. The time and effort you put into answering these questions is directly proportional to the quality and completeness of your finished plan. Retract the time needed to do this right. It will save you a lot of time and money, and spare you considerable headaches later on down the road.
EXECUTIVE SUMMARY
Very often, an architect will have a three dimensional model of a building plan constructed to give a client a better feel for what the finished product will observe like. In many ways, your executive summary serves the same function–it provides potential investors or lenders with an overview or model of your proposed venture. And, as in the case of the architect, a three-dimensional model can’t be built until the building plans have been completed. Likewise, a well-designed executive summary should not be prepared until the assure portion of the business plan is completed.
Executive summary components
What goes into your executive summary? In a word…everything. It is a scaled-down version of your complete business plan much in the same method that an architectural model is a scaled representation of the finished building or structure.
When writing your executive summary, assume that the reader knows nothing about your industry or the market you are targeting. Start from ground zero. Is your venture designed to fill a specific niche or void in the market? If so, describe this need or potential opportunity from a consumer’s perspective. This will enable you to put the reader in the consumers’ shoes, allowing them to see the real merits of the product or service you are offering. This is especially true if you are launching a new venture. The following is an introductory paragraph of an executive summary for a same-day courier service:
Despite the availability of overnight letter and package delivery services, many businesses and individuals find themselves in situations where a letter or package must be delivered to a destination the same day. This is especially apt in those instances where customers miss the overnight carrier’s drop off deadline. Proof of this can be seen by the modern decision of Federal Express to offer a later package topple off time of 12:00 midnight at select locations for $30– $15 more than their standard overnight rate. Now for the same $30 rate, consumers can have same day service to engage major cities throughout the United States with Jetway Dispute Service.
The purpose of this proposal is to secure $5,200,000 in capital or a line of credit for operational expenses and to charter a small fleet of corporate jets to service six major cities over the next two years.
In Summary
Your executive summary should also explain how much capital you are looking to raise and how the money will be used to ensure the success of the venture. Do you have tangible assets that the lender or investor can attach and sell to attend recover their investment or are you seeking venture capital. If the latter is true, be prepared to offer a sizable amount of equity in your company or venture to the potential investor. If the risk is substantial, expect to part with 60% or more in equity and be prepared to have the investor, or someone appointed by the investor, sit on your board of directors. In either case, your executive summary should spell out a repayment schedule and the interest rate–expect to pay a few points above prime if you are dealing with primitive lending institutions, and substantially more if you are talking to private investors.
COMPANY OVERVIEW
This fragment of the thought provides the reader with a detailed look at the structure of the business entity behind the proposed business venture. This fraction is designed to overcome and address any concerns the reader might have about the operation of the company and its track record in the industry. Turning again to the construction industry for an illustration, contemplate the questions and concerns a client might have in selecting a construction company to head up their building project. Naturally, the client would want to know if this project is well within the scope and experience of the construction company. Have they ever handled a project of this size and magnitude? Can they deliver the project on schedule and within budget? These are the same concerns and questions that will be dancing in your reader’s mind while reviewing this fragment of your idea.
Is this a start-up venture?
If this is a start-up venture, this section will need careful writing, as the company has no prior track narrate to refer to in the plan. It will be important to focus on the mission statement and the organizational structure of the company. Share with the reader the company’s strengths and assets, whether they are equipment or the experience of your staff. You will also want include a discussion about the financial status of your company, any problems you may be encountering and what it will take to overcome these obstacles. Don’t be afraid to part any weaknesses or shortcomings you might have with the reader. By openly sharing this information with the reader you are building a foundation of trust. You are also saying to the reader that you are aware of your limitations and have a plan of action to overcome them. Besides, your reader may discover this information without you volunteering it.
Staff profiles
Before any investor or lender puts money in a financial venture, they want to know whom they’re doing business with. In addition to your credit scores and personal assets, they want to take a look at your professional experience and everyone else on your management team. These career profiles should be brief and highlight the professional experience and skills of your management team. Be sure to spotlight any accomplishments or awards received in the industry.
The following is an example of a company overview for our fictional company, Jetway Express Service:
Jetway Express Service is a for profit S-corporation registered in Davidson county, Tennessee on February 5, 2000. The corporate officers consist of Robert Williams, president; Jeff Taylor, vice president; Alice Cummings, treasurer and Denise Smith, secretary. The corporation was formed with an initial investment of $50,000, which was used to set up corporate offices at 1200 10th Avenue North, Suite 506 in downtown Nashville.
Jetway Express Service was created to provide same-day shipping service to local area businesses and consumers. The decision to start this venture was based on Robert Williams’ experience as a regional operations manager for Federal Snort. His observations, over a five-year period, indicated a growing number of drop-off packages just minutes before the cut-off time at each manned location. This lead to the decision by Federal Grunt to offer extended service hours to accommodate leisurely drop-offs. Seeing a potential market of overnight package customers who were unable to build the drop-off deadline, Williams decided to offer a regional same-day delivery service. Target customers for this service would include hospitals (donor organ delivery), lawyers, advertising agencies, banks, and news media.
To measure the sales potential of this service offering, a promotional mailing was to sent to each target industry. The response rate was very favorable, across the board, indicating strong potential for regular business in each target industry. To adequately service this potential demand, it will be necessary for Jetway Express Service to charter a cramped number of jet aircraft until the company can purchase and maintain its own fleet.
In Summary
The mission of the Company Overview is gain confidence in your investor or financial institution that your company has the manpower, market savvy and management structure to generate substantial profits within your target market. To do this successfully, you must be able to preempt any questions or doubts that might surface. This means anticipating any questions and answering them before they are tossed on the table. This will enable you to remove charge of your presentation and the impression you manufacture on your potential investor and/or lender.
Be sure to include a professional profile of your management team and their qualifications. Also include details about company ownership and what role your board of directors (if you have an advisory board) will play in shaping management decisions that will impact day-to-day operations. Is your advisory board just window dressing or do they bring valuable experience and problem-solving skills to the table? Remember, you must sell your potential investor or lender on the contributions that will be made by each person on your team. Otherwise, they might ask you to steal this individual before financing the venture.
Your Company Overview should take the reader on a tour of the business. The more comfortable they are with the way you run your business, the more likely you are to receiving financing. Do your homework! Are there other businesses in your industry that are recognized market leaders? Learn how they bustle their business and see if there are a few areas in your company that need additional fine-tuning. If so…crash out the tools.
MARKET INSIGHTS
Where is this loyal stream of profits going to come from? This is the question that will be on the mind of your reader as they scan over your business plan. Don’t have your reader making assumptions about your market. Remember, you are supposed to be the market expert. Even if you are not an expert in your field, be able to provide evidence to support your claims about the sales potential of your market.
Do your know your market?
Knowing your market is a key element to the success of your business. Would you trust your building project to a contractor with no knowledge of local building codes? Of course not. Why then would you expect an investor or lender to finance your venture if you don’t have a solid grasp on your industry or target market? What evidence do you have to support your market claims and potential sales projections? Are they numbers you pulled from the sky or can you offer some tangible proof or meaningful assumptions to support your claims. One scheme to collect this information is through market research.
Market Research — Doing your homework
Homework is no fun. Having your business venture bite the dust for lack of financing is no picnic either. If you want to stay in the game, you have to do your homework…market research. Market research is an important component of every successful business venture. It enables you to clearly define the demographics of your target group(s). These defining characteristics include such factors as age, gender, economic status, lifestyle, geography, and other parameters. This information will help you in determining the most effective advertising vehicle(s) to utilize to market your product or service as outlined in your marketing strategy. In addition, market research can help you assess competition and spot emerging trends in your industry. Arming yourself with this information will provide you with a realistic basis (hard data) for forecasting sales and strategic planning.
There are two types of market research– secondary and primary research. Secondary research is information still from existing sources while primary research is market information you’ve gathered yourself. The tools faded to collect this information may include surveys, focus group studies, interviews or direct solicitations.
The primary goal of this market research is to: (a) Identify your best customer. (b) Determine the best way (advertising vehicle) to near this potential customer. (c) Determine the best pricing for your product or service. (d) Learn how to keep repeat customers and determine what other products or services can you offer them. (e) Why did they select you over the competition? (f) What are the strengths and weaknesses of the competition?
If you can answer the previous questions, you are well on your way to writing a successful business plan– one that will help you bag the capital and financing needed to reach your target goals.
Secondary Research
There are a variety of resources available to provide demographic and geographic characteristics of potential customers or trends in your industry. Many of these resources are available at your local library or on the Internet. You can also turn to market research professionals who will do the work for you on a fee basis. The price can range from a few hundred dollars to several thousand dollars. Rest assured that a potential investor or lender will look more favorably on a business plan where a serious investment was made to gather vital market research. Any investment you make to gather this data, especially if substantial, will count toward your equity position in the company. Secondary research sources include:
œ U.S. Census Bureau
œDun & Bradstreet
œ Thomas Register
œ Hoovers Company Information
œ www.workingsolo.com/biztools/articles/testbizidea.html
œ Library of Congress Business Reference Services
œ US Chambers of Commerce
œ SRDS (Standard Rate and Data Service)
œ Internet search engines (Altavista, Excite, Lycos, Yahoo, Infospace, Superpages, Zip2)
œ www.claritas.com
(See appendix for detailed listing. Published separately)
The following example is taken from a fresh magazine proposal submitted to a leading trade magazine publisher. The research conducted was from magazine advertising rate cards and wait on issues of the publication at the local library.
MARKET SIZE
The viability and growth potential of DIGIT Systems & Technology can be evaluated by the success of vertical market publications such as Publish!, Personal Publishing and In-plant Printer & Electronic Publisher. A review of the subscriber base and advertising revenue of each publication will provide an wonderful indication of the success potential of DIGIT Systems & Technology.
Publish!
Publish! Is a monthly consumer magazine devoted to desktop and personal computer publishing. Editorial departments feature coverage on page-makeup and typesetting systems that interface with personal computers. The cloak price of Publish! Is $3.95 with an annual subscription rate of $39.90. The average come by paid circulation (March 1988) is 100,000 copies. Since March 1987, the publication’s circulation skyrocketed from 25,000 to 100,000 copies, resulting in a 58% increase in ad revenues. The following is an analysis of advertising pages from March 1987 to March 1988.
Page Size
Bulky Page B/W
Half Page
Quarter Page
Full Page 4/C
March 1987
$3,495
$2,270
$1,310
$4,195
March 1988*
$5,995
$4,195
$2,250
$7,495
Total estimated ad revenue for the March 1988 issue is $384,893
grunt on April 1988 Rate Card
Primary Research
Identifying and locating prime customers is essential to the success of any business. Primary market research is a powerful information tool dilapidated to encourage accomplish this. Primary research data can come from a number of sources, including customer surveys, focus group studies, telemarketing, coupons, direct solicitation and interviews. Information unruffled from this research will enable you to profile your best customers, assess the quality of your product or service and measure the strengths and weaknesses of your competition.
An excellent example of essential research can be found in the barcode savings cards that supermarkets offer customers. To receive the “tremendous” savings that these cards offer, shoppers must first fill out a questionnaire that asks for your household income, if you own a home or rent, your marital status, and any other information they can extract from you. This information is then later used to profile customers by collecting product hold data each time the card is scanned at the register. The data collected helps marketers paint a more realistic picture of their best customers, enabling them to acquire more accurate decisions on brand purchases, product pricing and selection of the most effective advertising media for reaching these customers
To help launch the publication DIGIT Systems and Technology, the publisher plans to purchase a mailing list of 50,000 computer users. The promotional plan includes a direct mail piece (see below) highlighting the editorial deny of the magazine. Since it is important to decide the type of computer and software owned by the target subscriber, the yell mail piece features fill-in blanks requesting this information. This information would be used later to help create a reader profile for use in advertising sales and to help fine-tune the editorial exclaim. Indispensable research collected from this promotional subscription mailing would be used in the business plan to help raise the venture capital to start the publication.
In Summary
Knowing your market is essential to the success of your business venture. All too often businesses fail due to a lack of knowledge about their market. For example, 10 years ago service bureaus began springing up all over looking to cash in on the desktop publishing boom by offering pre-press services. Many failed to look at the growing trend in the industry towards direct-to-plate printing, a technology that eliminated the need for pre-press film imaging. Only those service bureaus who recognized the trend and took steps to diversify their business by offer additional services –web construct, digital printing or digital photography– will remain in business as more and more printers turn to direct-to-plate technology.
Your business plan should contemplate real insight into your market and your target customers. Invest the time and money needed to collect this information using primary or secondary research. Use secondary research to help your identify potential customers. Once you have identified them, utilize primary research to determine the actual sales potential for your product or service and incorporate this information in your business idea. In addition, your business plan should reveal a marketing strategy for reaching these potential customers. This will be the focus of the next part.
MARKETING STRATEGY
Positioning — getting into your customer’s mind
You’ve done your secondary and/or primary research and have a firm grasp of your target market. The next step is developing a plan for reaching your target customers. This plan will include developing a sales message or strategy for “positioning” your product or service in the minds of your target market. “Positioning” is the message or impression you want left on the minds of potential customers when thinking about your product or service. For example, when asked to name two national rental car companies, most people will acknowledge Hertz and Avis. On the other hand, we asked which rental car “tries harder,” everyone answers Avis.
The goal of your positioning statement is to beget a lasting image or impression on the minds of consumers that will set your product or service apart from the competition. Look for a single consumer abet that your product or service offers and try to incorporate this into your imprint line or slogan. This way, when consumers have to make a choice between your product or service and a competitor, they will call to mind the benefit that you offer. This will usually result in the consumer purchasing your product or service, even though your competition may be offering the very same benefit. People don’t buy products or services with benefits they can’t recall.
Media Selection — reaching your best customers
Now that you know what to say to potential customers, you have to find the best way to say it. Should you use print ads in the local newspaper, radio or TV spots, or a simple direct mail worry? Regardless of which media you use to rollout your product or service, you should also incorporate an Internet presence into your marketing plan. More and more customers are turning to the Internet to research and make purchases. This is especially true of busy professionals who expend mighty time in front of a computer. Pick a media that reaches the largest number of prime prospects for your product or service. A media that enables you to “zoom in” on a select audience of consumers, such as cable TV, the Internet, special interest publications and direct mail, reaches a more targeted audience with minimal waste in ad dollars.
Before investing heavily in any media, test it first. If you are running weekly ads in a newspaper, give it a month before pulling out. Try a three-month test if you’re advertising in a monthly magazine. For TV and radio, if you’re running 60 spots a month, give it two to three months before baling out. You’re decision to stay with any media should not be based solely on the number of responses you receive; it should be based on the number of sales you make. In addition to sales, there are other deciding factors such as CPM (cost per thousand) and CPS (cost per sales) but this topic is outside of the scope of this document. A more detailed discussion on developing a marketing strategy and choosing the right advertising media will be offered in the book Marketing 201 — Breaking the rules without getting caught.
Marketing Budget — spending money to effect money
Once you have decided on the media you will consume to roll out your sales message, you then need to establish an advertising budget. This budget should be planned to provide yearlong exposure for your sales message. Whether it’s an ad in the Yellow Pages, weekly ads in your local newspaper or a monthly mailing to modern and existing customers, you need to budget for this. When it comes to marketing, consistency and constancy are what yield lasting results.
In Summary
Getting a firm handle on your market is key to the success of your business plan. Remember, you should never accomplish assumptions about consumer spending based solely on your own buying preferences. When in doubt about consumer buying behavior, conduct surveys, do mark testing, one-on-one interviews, focus group studies, etc. Having this information in your business plan will add real substance to your basic assumptions and sales projections.
OPERATIONAL STRATEGY
How well you manage your business is famous to its overall success. For example, you may be an excellent salesperson and have no difficulty moving product out the door. On the other hand, do you possess the skills and savvy it takes to motivate and manage people? If you have what it takes to run a successful business…prove it! Your business plan should reflect your keen insights into the day-to-day operations of the venture and what it takes to go the distance. You do this by putting it all down on paper… it’s your plan for success.
Play-by-play vs. Action Highlights
It takes considerable concentration and lots of idle time to listen to a sports announcer’s play-by-play account of a major sports event. Investors and bankers have a short attention span and no idle time to invest in a play-by-play account of your company’s operational strategy. If you really want to wow them with details, invest that time and energy into your spreadsheet projections where you will have their attention.
Your operation strategy should be action highlights of key decisions and planned events that will have a significant impact on your business. These year-to-year action highlights should outline important business decisions and activities you have planned over the next three to five years. Don’t feel the need to go into a lot of detail. The main purpose of this exercise is to present your reader that worthy opinion, planning and research have been invested in this project and that its not the product of some chemically-induced intellectual inspiration.
The following are operational strategy highlights from a five-year business plan for a consumer/trade publication called DX.
First Year
Build Circulation
To achieve the magazine’s rate base goal of 12,000 during the first year, active say mail promotion efforts will be targeted at music and sound retailers, club owners and record stores. Interest among record stores to carry the magazine has been very positive.
The target goal for the first year is a nationwide network of 200 record shops and select audio retailers selling a minimum of 15 magazines per issue. To accomplish this, a promotional mailing will be sent out to record stores and DJ equipment retailers. Additional mailings throughout the year will also be passe to support this effort.
In addition, complimentary copies of the magazine will be shipped to a select number of manufacturer rep firms for distribution to their dealers and record pools. Several collect firms both in the U.S. and Canada have agreed to forward the magazine to their dealers.
Fine Tune the Editorial Product
The essential editorial goal of DX during this time is to build the editorial staff and structure the editorial departments. To assist in the selection of products for review, bind-in acknowledge cards featuring product listings will enable readers to select those products they would like to sight reviewed in forthcoming issues.
To attend in the planning of future articles, editorial surveys will mailed to select subscribers for input. These surveys will include a listing of article titles with a brief description of the editorial contents.
Increase Advertiser Participation
The major worry at this time will be to identify potential advertisers and familiarize them with the magazine. An in-house database of prospects will be maintained to track all sales calls, promotional mailings, ad insertions and sales leads.
Second Year
Circulation growth
The rate base goal for DX during its second year is 16,000. Once again, promotional mailings and trade show attendance will be passe to build circulation. In addition, efforts will be directed at building subscriptions overseas. Ad placements in select overseas publications and trade shows will be faded to accomplish this goal.
At this time, additional sales staff will be recruited to call on key accounts on the East Coast and Canada. In addition to lisp mail advertising, flip chart and videotape presentations will be used on sales calls. Attendance at leading industry trade shows will also used to build advertiser participation.
An important goal to be realized at this time is increasing the magazine’s frequency from bimonthly to monthly. To support this trouble, additional editorial benefit staff will be recruited.
In Summary
The following are a few examples of important action highlights to include in your operational strategy.
œ Staff expansion
œ Relocation
œ Major expenditures
œ Changes in media selection and advertising strategies
œ Mergers and acquisitions
œ Chances in organizational structure
œ Patent filings and certifications
œ Legal proceedings that will have a significant impact on the business
œ Target goals
œ Planned trade and media events– press conferences, trade and talk shows, etc.
œ Stock offers
No one can accurately predict the future and since you can’t it would be also wise to include a time-line in your operational strategy for re-evaluating sales performance and future goals.
FINANCIAL PROJECTIONS
Your financial projections are the climax of your business plan…it’s where the rubber meets the road. And, like tires, if your financial projections lack traction…your venture is going nowhere. To put real bite into your financial projections, you need solid research data as the basis for your sales assumptions. This data may be based on past sales history or primary research that you have conducted. Either design, you need some data or information on which to build your case.
Basic assumptions — building your case
Whether you’re putting a man on the moon or building your first house, the whole process begins with some basic assumptions: we have the technology, money and manpower to make it all happen. Likewise, your financial projections must be built around some basic assumptions. If these assumptions are flawed or inaccurate, your financial projections will have no legs to stand on.
If your assumptions are based on primary research you’ve conducted, you may want to include a brief summary of this information as an introduction to your financial data. This way, you and your reader are both on the same page and will, hopefully, approach at the same conclusions.
Here is an example of a basic assumption in support of sales projections.
Basic Assumptions
Throughout the calendar years of 1999 and 2000, sales rose from $850,000 to $1,650,000–an increase of 94%. This increase in sales was attributed to the addition of three new sales associates to the marketing staff. The average annual sales volume generated by each associate during this period was $133,333.
Breaking-Even Analysis
A break-even analysis determines the number of dismal sales necessary to meet all operational expenses– your bottom line. This sales figure is distinguished in helping to set realistic sales goals. This number can be computed using the formula below:
BE = FC € (1 – (VC € corresponding sales))
What is the break-even point for a business with total sales of $195,000, fixed costs (FC) of $60,000 and variable costs (VC) of $55,000, the break-even point (BE) is:
BE = FC € (1 – (VC € corresponding sales))
= 60,000 € (1 – (55 € 195))
= 60,000 € 0.71
= 85,507
Break-even = $85,507
Best-Case Scenario
A best-case scenario is a spreadsheet computation based on optimum sales conditions. This sales figure is useful in determining the maximum sales potential for any given venture. Manufacturers often use best-case scenarios to assess what impact production limitations might have on sales. Best-case scenarios are also an excellent way to determine the profit ceiling of a business venture in order to appraise its total worth. Best-case scenario computations are also an wonderful way for potential investors and lenders to cross check for overly inflated sales projections.
Worst-Case Scenario
Investors like to know the downside of any venture in order to assess the risk. For this reason, you need to build in a contingency into your plan to minimize risk. Your worst-case scenario is based on the minimum number of sales that can be anticipated utilizing your backup plan. For example, your worst-case scenario might mediate product sales at a lower profit margin to stimulate product movement. Another worst-case scenario may factor in staff downsizing to lower overhead in response to sluggish sales. Again, the mission here is to explain investors or lenders your plan for minimizing the downside.
Pitfalls to Avoid
The following is a list of snares you need to steer clear of when writing your business conception. A careful review of this information will aid you avoid these common pitfalls that many first-time business planners stumble into.
œ Avoid using financial forecasting as a substitute for business planning.
œ Don’t ignore market or industry trends at national or regional levels.
œ Don’t overstate market shares and growth, sales forecasts, and profit levels.
œ Give sufficient consideration to capital requirements.
œ Don’t under estimate costs and delays that are likely to be encountered.
œ Don’t disregard industry performance norms and response from the competition.
œ Don’t ignore generally accepted financial guidelines and ratios.
œ Avoid making overly optimistic assumptions about the availability of loans, trade credit, grants, equity etc.
œ Avoid paying yourself a high salary during the first few years of the plan.
Items to include
There are several other documents you will want to include along with your financial projections. If yours is an existing business, you will need to include a recent balance sheet and cash hobble statement for the last three to five years. If you are a start-up venture, prepare projected annual balance sheets for three years. Your balance sheet should include the following items:
Current Assets — Cash on hand and other assets that can be readily converted into cash such as stocks, bonds, insurance policies, etc.
Fixed Assets — These include land, buildings, equipment, machinery, furniture, fixtures, etc.
Other Assets — These items are used to generate income or are used in the general course of business such as office supplies, vehicles, and contracts.
Liabilities — Claims that creditors have against the assets of the business. In short, debts owed by the business.
Current Liabilities — Payments or debts that are due within a year. These might include vehicle installment loans, salaries and especially employer taxes such as unemployment insurance and workers compensation insurance.
Long-term (Fixed) Liabilities — Debts or portions of debts that are not due for payment within a year. Payments on future income taxes for profits of the unique year but are not due for payment until later.
Equity – Those assets of your business minus its liabilities. This equity is the owner’s investment plus any profits (or any losses) that have been left to accumulate in the business. If your business is incorporated, this will be reflected in the capital stock account as the paid-in value of shares issued to the owner(s) of the business.
Undistributed Profits — This is recorded in the earned-surplus account. If your business is a proprietorship or partnership, these are the capital accounts entries under the name(s) of the owners. Any increases in owner’s equity as a result of undistributed earning are also recorded here, as well as any decease in equity due to profit losses.
SUPPORTING DOCUMENTS
No business plan is ever rejected for providing too much information. On other hand, plans are often returned for lack of a few critical pieces of information. The following is a list of supporting documents you might want to include in your plan in an appendix:
Resumes — In addition to the staff profiles of your management team, include resumes of your support staff, consultants or anyone else who will be actively involved in your business venture.
Credit Information — A copy of your unusual report will be good to include. This will save the investor or lender the time and effort to pull a report, which may translate into a quicker loan or investment decision. Credit references from your vendors and suppliers are also highly recommended and may help smooth out any wrinkles in your credit report.
Quotes and Estimates — Include any quotes or estimates in support of any expenses for outside products or services. This will serve dispel any concerns over inflated numbers.
Contracts and Commitments — If you have existing contracts or letters of intent from clients and prospective customers, be sure to include copies of these documents in your plan. These documents will go a long way in supporting your sales projections.
Deed, Leases or Buy/Sell Agreements — Include any documents that support property or equipment ownership and any leasing or marketing agreements you have entered into.
Legal Documents — Legal documents you may want to include in your understanding are patents and copyrights, certificates and licenses, partnership agreements, franchise agreements, etc. If your business plan contains sensitive and proprietary information, you may want to include a non-disclosure and non-compete agreement which a prospective investor or lender will sign before viewing the plan. Exercise caution before asking a potential investor or lender to sign a non-disclosure and non-compete agreement as this may be viewed as a breach of trust. After all, you are asking them to “trust” you with their money.
Research Data — Include any research or demographic data to back your market and sales projections. Without these “legs” to stand on, your whole presentation can fall flat on its face.
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Filed under Small Business Pbx Systems by on Feb 26th, 2011. Comment.
Every website hosting service comes with some sort of way to track activity on your website. If you have these tools why not employ them? So many small business owners tend to just guess about what’s going n with their website based on traffic and sales. They don’t look to see where the sales are coming from or how the customers get there. They just know they got there.
Using these tools to track your website activity will only help your business grow if you consume them properly. Here are a few reasons why you need to track your website activity.
1. If you just started a new website odds are that you probably paid for traffic. You may have former ad words, pay-per-click, or bid on keywords. Either way, you spent money to get people to approach to your website. Don’t you want to make sure its working?
By tracking the activity on your website you will be ale to seek which keywords are working and which ones aren’t. You will be able to peep what search engines are sending you traffic and what ones aren’t. This way you can do necessary changes to get more traffic to your website.
2. You need to know where your website traffic is coming from. How are people getting to your site? Are they searching for you in the search engines? If so, what key words are they using? Do they come by you from various links around the internet? Are complimentary websites sending you traffic?
Once you find out where your traffic is coming from you will have a much better plan on how and where you need to focus your efforts on getting people to your website.
3. What do your website visitors like? Check to see what the most viewed pages on your website are. Once you glean out what they are see if you can provide more pages like that.
Don’t forget to check out the entry and exit pages on your website. Do you have a webpage that people exit on a lot? If so, check out that webpage and see why. Is it the enlighten, bad links, what? Find out what it is and either change it or get rid of it.
4. Fetch out what’s not working on your website. Some website analysis tools will let you see what operating systems and browsers your customers are using. If a colossal percentage of your customers are windows users who browse with mozilla make sure you website is optimized for those settings.
Check your links constantly. No one likes bad links. These dead-end links can are annoying and worse yet, detrimental to your business. If you have too man bad links on your website people may leave or draw conclusions about how well your business is run. Checking and updating links should be a monthly task.
If you have problems understanding or analyzing your websites statistics they way they are show via your web hosting services, don’t fear. There are plenty of websites offering free and subscription based programs to track and analyze your website. Many of these websites are much more user friendly and provide information in a manner that is easy to understand.
Many of these websites will even track your search engine ranking, provide you with what search engines people are using, what keywords people are using to find you, what links people click to find you, who is sending you traffic, and much much more.
These website are certainly worth the small subscription
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Filed under Small Business Pbx Systems by on Aug 14th, 2010. Comment.
The phone system is a critical section of equipment when operating a diminutive business. Your phone system needs to meet the needs of your particular business, and needs to be customizable and expandable if you anticipate changes or growth in your business.
When you consume a phone system, you need to evaluate the needs of your business and compare them to the features that are available.
Phone System Size:
The first thing to consider when you choose a phone system is size. When you look at phone systems, it is important to factor in the original and anticipated size of your business. If your business has more than 40 employees, or is growing quickly, you may need a large phone installation such as a PBX phone system. PBX systems can be programmed and customized to accommodate nearly any feature you might want. Smaller businesses may glean that a PBX system is the best option for their needs, and is still cost effective, or they may opt for one of the readily available Key or KSU-less phone systems intended for smaller installations.
First, figure out how many extensions your business will need. You will probably need an extension for each employee or work area; in addition, you will need a phone line for each fax machine or other equipment that uses a phone connection. The next factor in phone system size is the number of outside phone lines. The outside phone lines control the number of calls that can choose place simultaneously, either coming into or out of your business. If you expect your business to grow, make sure your system can be expanded to the maximum number of lines and extensions you expect your business to need.
Caller ID/ Call Waiting ID:
If it is important to you to know who is calling, you will need a phone system that offers caller ID. If you use belief to use call waiting to alert you to another call that is coming in, you may want caller ID on your call waiting as well. Consider the way the phone displays the caller numbers and how many can be stored in memory for a call history. Remember that use of these services may incur additional charges from the phone company.
Voicemail:
Do you need a phone system that offers integrated voicemail for each extension? Voicemail allows each extension to relate outgoing messages for callers and to picture messages when the recipients are away from the phone.
Conference calling:
Do you need to host phone meetings by conferencing in multiple people within or out of your office? Look for the number of lines that you may conference into one call.
Speakerphone:
Is it important for you to take calls hands-free? Gaze for a speakerphone function on your phone system. You will probably want one with adjustable volume control.
Memory and Speed Dial:
Most business phone systems allow you to store frequently called phone numbers in the system. Evaluate how many numbers you will need to store to make sure the phone system will accommodate all of them. Stored numbers may be accessed by programmable speed dial codes on some systems or using the screen menu on other phone systems. Also, look for a phone system with battery backup so that your phone systems will not lose their stored memory in the event of a power outage.
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Filed under Small Business Pbx Systems by on Jul 24th, 2010. Comment.