CHAPTER ONE GOING INTO BUSINESS WHAT YOU NEED TO KNOW

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1 CHAPTER ONE GOING INTO BUSINESS WHAT YOU NEED TO KNOW This informations are based on questions asked by people in small business or contemplating starting, suggests the many facets of running a small concern that each owner/manager must become familiar with. While the answers to the questions are hardly exhaustive of any of the subjects, they provide the background for questions you may need to ask before going into business, as well as suggesting sources of answers to those questions. Introduction Almost everyone considering it has dozens of questions about starting a small business. The only foolish questions, of course, are the questions that aren't asked. Yet, many times we don't have enough information to ask the right questions. The questions in this guide are drawn from participants in training courses for new entrepreneurs. Most of the questioners didn't own, operate, or manage small businesses. Their questions are typical of what's on the minds of potential business owners. You may have pondered similar questions, as you thought about becoming your own boss. The questions fell generally into areas such as the steps in setting up a business, marketing, and financing a new concern. In this guide the questions have been grouped by subject. Answers to the questions came from experts in the various areas. These experts include a lawyer, an accountant, a bank loan officer, several small business owners, and market researchers. These answers, it is hoped, will help you as you approach deciding on becoming a small business owner. The questions may suggest questions that you should find answers to before you invest your money, time, and effort in a small business. 1. If you have money but no particular business in mind, how can you get enough information on the best business to go into? The best way of choosing your business venture is to look at your experience and educational background. A thorough review will provide leads on the business field you should enter - do what you know best. Even more important, you must like the business field you are going to enter to bring TEL: ,

2 the enthusiasm and self-confidence you need to make the business go. 2. What are the basic survival skills you need to run a business? The basic survival skills include a working knowledge of basic record keeping; financial management; personnel management; market analysis; break-even analysis; product or service knowledge; tax knowledge; legal structures; and communication skills. 3. What special obstacles do women entering business face, and how can these obstacles be overcome? Women are at last making inroads into business, not only as executives but as owners. There are many obstacles, chief among them the doubts that lenders, suppliers, and in some fields, customers have about women's ability to run businesses. These can be overcome with self confidence and a strong belief in your ideas. You should not be discouraged by being rebuffed by people who simply don't understand. As more and more women enter business and succeed, the process will become easier and easier. 4. What are the most important factors that cause small business failure? There are, of course, many reasons for the failure of new small businesses. One way of looking at the causes is to remember that a new business is starting at zero momentum; newly entering a market, having to establish supplier relations, finding proper financing, and training employees. To coordinate all these facets and start them simultaneously is a tremendous job. If you don't have experience and management capability, success won't be very likely. You'll also find that undercapitalized businesses, those without enough cash to carry them through the first six months or so before the business starts making money, don't have good survival prospects. In such cases, even businesses with good management can founder. 5. How long does it take a new business to establish a good public image? A good public image takes a long time to establish (and only minutes to lose). There is no set formula, but a good image depends on: The service, products, and customer treatment you provide; The market you're in; - 2 -

3 How you stack up against your competitors; The quality of your public relations and advertising programs. If you're new to a market - and if you do what you say you're going to - you may establish an excellent reputation in 18 to 24 months. 6. Do you need a lawyer to start a business? No, but it's wise to get the best advice possible when you're starting out. An attorney is one source of the expertise you'll need to draw on. 7. What form of business do you recommend for a new business? Each legal form, sole proprietorship, partnership, or corporation, has its advantages and disadvantages. The one you should pick depends on your circumstances, including: Your financial condition, The line of business you're entering, The number of employees, The risk involved, Your tax situation. Don't assume, if you plan a one-person business, that sole proprietorship is the way to go. See your lawyer. 8. How can you find out what the prevailing costs are for a service business in your market area? One way is simply to call competitors and ask their prices. Their prices will give you a lead. You could ask competitors' customers for the same information if you didn't want to go directly to the competition. 9. Does a bank require absolute top credit references from loan applicants? The better the credit references the greater the possibility of loan approval. 10. If I estimate my start-up cost at =N=100,000 and can't put up anywhere near the =N=50,000 that I've been told is what I should have for my share, am I wasting my time even filling out a loan application? In all probability you would be, although there are some exceptions. For - 3 -

4 example, it might be possible to get a loan under your circumstances if you were buying a business that's already operating well enough to provide sufficient profits to cover its obligations and the loan. Furthermore, if the applicant is the present manager who has made this business go, the chances of getting such a loan are much better. 11. Getting money is difficult; keeping it may be even more difficult. Where can I get Assistance in managing my business? Your accountant and bank can provide financial counseling which can be very helpful in starting and managing your business. They can also give you invaluable information on the local area and your market that can be critical in making decisions in your business

5 CHAPTER TWO BUSINESS IDEAS Every business can benefit from the preparation of a carefully written business plan. The main purpose of a business plan is to: Help you think through the venture and ensure you have considered all your options and anticipated any potential difficulties. Convince lenders and investors that you are in control of the project and that their money will be safe with you. Serve as an operating guide as you turn your idea into a viable business. Furnish a standard against which to judge future business decisions and results. Full list of plans Hour DVD and Video CD Hire 2. Abattoir Business 3. Accommodation Agency 4. Accountant / Book Keeping 5. Acoustical / Musical Sound Services 6. Acting 7. Actors Agent 8. Acupuncture 9. Adult Day Care 10. Adire Cloth Production 11. Adoption Search Service 12. Advertising Agency 13. Advertising Sales Representative 14. Aeroplane Spare Parts 15. Agriculture 16. Agricultural Marketing 17. Airport Taxi Service 18. Air Charter Service (Helicopter/Aeroplane) 19. Air Conditioner Installation / Maintenance 20. Artist/Painter 21. Alterations/Seamstress Business 22. Ambulance Services 23. Animal Broker/Dealer 24. Appliance Store 25. Aquaculture - 5 -

6 26. Aquarium Services 27. Antiques Dealer 28. Arbitration Service 29. Arcade/Party Rentals 30. Architect 31. Art Broker/Corporate Art Consultant 32. Art Business/Gallery 33. Arts Festival Promoter 34. Association Management Services 35. Athletic Recruiter/Scout 36. Auctioneer 37. Audiovisual Equipment Hire 38. Audio Recording for Trade Show and Seminars 39. Audiobook Producer/Distributor 40. Auditing Specialist 41. Auto Accessories 42. Auto Body Shop 43. Auto Dealer 44. Auto Insurance Agency 45. Auto Leasing 46. Auto Painting 47. Auto Parts Shop 48. Auto Rental 49. Auto Repair Shop 50. Auto Sales 51. Auto Service 52. Background Music Leasing 53. Bakery 54. Band Manager 55. Bankruptcy Services 56. Barbecue Event Catering 57. Beauty Salon 58. Beauty School 59. Beauty Therapist 60. Beef Cattle Farming 61. Beekeeper and Honey Producer 62. Bicycle Store 63. Bar Tending Services 64. Barbing Saloon 65. Bicycle Rental 66. Biodiesel Fuel Producer 67. Blog Writer 68. Blacksmith 69. Boarding House Operator - 6 -

7 70. Boat Maintenance/Cleaning Service 71. Boat Operation Instructor 72. Boat Tours 73. Body Guard 74. Book Binder 75. Book Publisher 76. Book Packager 77. Bookkeeping Business 78. Bottled Water Delivery Service 79. Boudoir Photography 80. Brick Manufacturer 81. Bridal Consultant 82. Bridal Show Promotions 83. Broadcast Sales/Advertising Broker 84. Building Maintenance Service 85. Bulk SMS Business 86. Building Contractor 87. Building Maintenance 88. Building Surveyor 89. Business Adviser 90. Business Card Printing 91. Business Management Consultant 92. Business Software 93. Business Training Provider 94. Business Plan Writer/Packager 95. Butcher 96. Cabinet Maker 97. Cable TV Installation 98. Cake Decorator 99. Calligrapher 100. Candle Making Business 101. Car Wash 102. Car Alarm 103. Car Audio Equipment Installer 104. Car Sales 105. Car Scanning Business 106. Car Spare Parts 107. Career Counselor 108. Carpet Cleaning Business 109. Carpet Installation 110. Career Consultant 111. Carpenter and Joiner 112. Carpet and Floor Covering Shop 113. Carpet/Upholstery Cleaning - 7 -

8 114. Cartoonist 115. Casting Director 116. Cat Fish Rearing Business 117. Catering Business 118. Cell Phone Accessory 119. Cell Phone Kiosk 120. Ceramic 121. Certified Public Accountant 122. Chemist 123. Chicken Farming 124. Child Clothing 125. Chalk Production 126. Child Care Service 127. Child Development Center 128. Childbirth Instructor 129. Classified Advertising Newspaper 130. Cleaning Agency 131. Clock and Watch Repair 132. Clothes Designer 133. Clearing and Forwarding Business 134. Cloth Dyeing / Adire Making 135. Clothing Retailing 136. Cobbler / Shoe Making 137. Coach 138. Coffin Maker 139. College Application Consultant 140. College / I.T Internship Placement 141. Color Separation and Film Assembly Services 142. Comedian 143. Comedy Writer 144. Commercial Actor 145. Commercial Photographer 146. Commercial Plant Watering Service 147. Commodities Broker 148. Computer Consulting Business 149. Computer Game Rental Shop 150. Computer Maintenance Service 151. Computer Repair Business 152. Computer Software Sales 153. Computer Trainer 154. Computer-Aided Design (CAD) Service 155. Computerized Special Effects Designer 156. Construction Management Services 157. Construction Services - 8 -

9 158. Consulting Business 159. Consulting Engineer 160. Consumer Researcher 161. Conference Organizer 162. Consular Services 163. Contractor 164. Cookery School 165. Cookery Teacher 166. Corporate Event Planning 167. Corporate Gift 168. Cosmetic Make up Artist 169. Cosmetics Shop 170. Cosmetologist 171. Counseling 172. Courier Service 173. Crayfish Farming 174. Criminal Lawyer 175. Custom Picture Frame Shop 176. CV Writer 177. Cyber Cafe 178. Copywriting Business 179. Corporate Insurance Broker 180. Corporate Trainer 181. Cost Reduction Consultant 182. Counselor/Psychologist 183. Cow Sales 184. Craft/Handicraft Business 185. Credit Consultant 186. Custom Embroidery for Cloths 187. Dairy Farm 188. Dance Instructor 189. Dance School 190. Database Management 191. Dating Agency 192. Day Care Center 193. Debt Collection Agency 194. Dental Surgeon 195. Dietician 196. Digital Printing 197. Domestic Appliance Repair Service 198. Domestic Garbage Collection 199. Domestic Security Installer 200. Drama School 201. Drug Store - 9 -

10 202. Dry Cleaner 203. Educational Toy 204. Elder Care 205. Dance Instructor 206. Database Consultant 207. Dating Service 208. Day Care Center Business 209. Desktop Publishing Business 210. Diesel / Petrol / Kerosene Marketing 211. Digital Imaging Service 212. Direct Marketing/Sales 213. Disability Consultant 214. Distributor 215. Dog Trainer 216. Driving School Business 217. Dry Cleaning Service 218. Educational Product Development 219. Electrical Contractor/Electrician 220. Employment Agency 221. Entertainment Directory Publisher 222. Envelope Manufacturing 223. Environmental Consultant/Contractor 224. Event/Meeting Planning 225. Entertainment Agent 226. Estate Agency 227. Executive Search Firm 228. Exercise Book Production 229. Export/Import 230. Fabric Coverings 231. Factory Locating Consultant 232. Fan Club Management 233. Farmer of Fruits and Vegetables 234. Fashion Designer 235. Fashion Accessories Retailer 236. Fashion Trimmings Supplier 237. Fast Food Business 238. Ferry Service 239. Film Production 240. Financial Adviser 241. Fish Farming 242. Fitness Center 243. Fiber Optic Transmission Systems 244. Financial Aid Consultant 245. Financial Planning Business

11 246. First Aid/CPR Instructor 247. Fitness Rental Equipment 248. Florist Shop Business 249. Football Coaching / Academy 250. Food Business 251. Food Delivery Service 252. Freelance TV Producer 253. Freelance Writer/Editor/Illustrator 254. Freelance Writing 255. Funeral Home/Undertaker 256. Furniture Design and Manufacture 257. Gardening Consultant 258. Generator Repairs/Servicing 259. Geologic Drilling Service 260. Gift Basket Business 261. Goat Rearing 262. Government Contract Consulting 263. Grant Writing 264. Grants/Proposal Writer 265. Graphic Designer 266. Greeting Card Business 267. Guinea Fowl Farming 268. Hair and Salon Business 269. Handbill Distribution 270. Handicrafts Business 271. Hand Sets Sale 272. Hat Maker 273. Haulage Business 274. Health and Fitness Club 275. Herb/Flowers Farming 276. Herbal Products Distributor 277. Helicopter Spare Parts 278. Home Cleaning Business 279. Home Schooling Consultant 280. Horse Trainer 281. Hotel / Hospitality Service 282. House Trash & Debris Hauling 283. HR Consultant 284. Ice Cream Maker 285. Ice Block making 286. Image Consulting Business 287. Importing/Exporting 288. Incentive Programs/Promotional Material 289. Incorporation Service for Businesses

12 290. Information Broker / Consultant 291. Insurance Agent 292. Installation of Security Devices 293. Interior Decoration Business 294. International Business Consultant 295. International Trading 296. Internet Business (Books) 297. Internet Marketing Specialist 298. Internet Search Engine Marketing 299. Interpreter 300. Investment Adviser 301. Janitorial Service 302. Jewelry/Clock/Watch Repair 303. Journalist 304. Juice Production 305. Knitting/Crocheting Lessons 306. Labour Relations Consultant 307. Landscape Designer 308. Laundry/Ironing Service 309. Lawn Care Service 310. Lawyer 311. Lead Exchange/Business Networking Service 312. Legal Cost Control/Litigation Management Services 313. Library Management 314. Licensing Agent 315. Lithographer - Printing 316. Machinery Rebuilding/Repair 317. Maid Service 318. Makeup Artist 319. Management Consulting 320. Manicurist 321. Manufacturer of Self-Adhesive Printed Labels 322. Manufacturer/Retail Item 323. Manufacturer's Representative 324. Market Researcher 325. Marriage Agency 326. Matchmaking Service 327. Mobile Car Wash 328. Mobile Catering 329. Mobile Vehicle Repair Service 330. Modeling Agency 331. Motivational Speaker 332. Marketing Consultant 333. Massage Therapist

13 334. Mediator 335. Medical Management Consultant 336. Medical Products Sales 337. Medical Equipment Manufacturing 338. Meeting Planner 339. Messenger / Courier Service 340. Meteorological Consultant 341. Midwife 342. Modelling Business 343. Mobile Book/Magazine Distributor 344. Mobile Car Inspection/Repair 345. Mobile Disc Jockey Service 346. Mobile Hair Salon 347. Modeling School/Agency 348. Monogramming Service 349. Mortgage Loan Broker 350. Motion Picture Research Consultant 351. Motivational Speaker 352. Motor Cycle Spare Parts 353. Motor Vehicle Transportation 354. Movie Site Scout 355. Multilevel Marketing 356. Multimedia Service 357. Musician 358. Musical Instrument Hire 359. Nail Salon 360. Nanny Agency 361. Network Marketing 362. Newsletter and E-zine Publisher 363. Nursery School 364. Nanny Service 365. Networking Services 366. New Product Researcher 367. Newsletter Publishing 368. Newspaper / Magazine Publishing 369. Newspaper Delivery Service 370. Newspaper Features Syndicate 371. Nightclub Business 372. Notary Public 373. Nursing 374. Nutrition Consultant 375. Nylon Bags Production 376. Office Equipment Leasing 377. Oil and Gas Field Services

14 378. Online Incorporation Service 379. On-Line Internet Researcher 380. On-Line Job Search 381. On-Line Services Consultant 382. Online Surveys 383. Online Training 384. Ophthalmology 385. Optician 386. Ostrich Farming 387. Paint Shop 388. Painter and Decorator 389. Packaging Consultant 390. Party Planning Business 391. Personal Assistant 392. Personal Chef / Cook 393. Personal Coach 394. Personal Instructor/Fitness Trainer 395. Personalized Children's Books 396. Personnel Safety Consultant 397. Pest Control Service 398. Pharmaceutical Business 399. Photocopying Service 400. Photography Business 401. Physiotherapist 402. Piggery Business 403. Pilot/Flying Lessons 404. Plumbing Works / Spare Parts 405. Political Campaign Management 406. Political Marketing Consultant 407. Pool Maintenance 408. Portrait Photographer/Artist 409. Poultry Business 410. Presentational And Public Speaking Coach 411. Printing Business 412. Private Detective/Intelligence Specialist 413. Private Tutor 414. Product Developer 415. Professional Diver 416. Projector Leasing / Hiring 417. Property Management Service 418. Public Pay Phone Services 419. Public Relations Business 420. Public Speaking Consultant 421. Pure Water Business

15 422. Rare Book Dealer/Search Service 423. Real Estate Agent/Home Researcher 424. Recharge Card Printing 425. Recording Studio Rental 426. Refuse Collection 427. Relocation Consultant 428. Remanufacturing:Laser Printer Cartridges 429. Rental Business 430. Repair Service 431. Restaurant 432. Restaurant Equipment and Supplies 433. Retail Bakery/Specialty Food Store 434. Retirement Planner 435. Reunion Organizer 436. Road Shows Organizer 437. Rubber Stamp Business 438. Satellite and Digital Equipment Installer 439. Sales of Novelty and Promotional Products 440. Sales Trainer 441. Satellite Equipment/Systems (Wholesale) 442. Scanning Service 443. School Business 444. School Uniforms Sewing (Bulk) 445. Scrap Metal Business 446. Scrap Plastic / Nylon Business 447. Script Writing 448. Second Hand Clothes Shop 449. Security Agency 450. Septic Tank Contractor 451. Sign Maker 452. Snail Farming 453. Social Networking 454. Seamstress/Alterations Business 455. Secretarial Business 456. Security Systems Consultant 457. Seminar (Speakers) Service 458. Sewage / Soak Away Clearing 459. Shipping/Customs Consultant 460. Shipping/Freight Forwarding Service 461. Shoe Retail Store 462. Short-Term Auto Rental Service 463. Sim Card Back Up Business 464. Sightseeing Excursions 465. Small Business Consultant

16 466. Snail Rearing Business 467. Soap Production 468. Soccer Viewing Centre 469. Software Conversion Service 470. Software Development/CD-ROM Packaging 471. Software Engineer/Programmer 472. Solar Energy Installer 473. Specialty Paper Producer/Distributor 474. Speechwriter 475. Sports Equipment Sales/Service 476. Sports Therapy 477. Stationery 478. Taxi and Private Hire Services 479. Television Programme and Film Making 480. Stenciling 481. Stenography Service 482. Stress Management Counselor 483. Surveyor 484. Talent Agency 485. Tax Preparation Service 486. Taxi Service 487. Teaching Service 488. Technical Writing Business 489. Telecommunications Consultant 490. Telemarketing Service 491. Television Program Distributor 492. Television Repair 493. Temporary Employment Agency 494. Textile Broker 495. Theatrical Lighting Service 496. Tour Services 497. Truck / Trailer Spare Parts 498. Tutorial School Business 499. Tow Boat Operator 500. Trademark Agent 501. Translation Services 502. Transportation Provider (Limousine/Van) 503. Travel Agent 504. Trophy/Engraving service 505. Truck Driver 506. Uniform Service 507. Used Boat Sales 508. Used Car Sales 509. Used Computer Sales

17 510. Used Industrial Equipment Sales 511. Vacuum Cleaner Repair 512. Video Production Company 513. Video Transfer Service 514. Vsat Installation 515. Television Programme and Film Making 516. Transportation 517. Trash Collection 518. Travel Agency 519. Tropical Fish and Aquarium Retailer 520. Upholsterer and Upholstery Services 521. Used Car Dealer 522. Vehicle Leasing 523. Vehicle Tow Truck 524. Waste Collection 525. Web Designer 526. Web Hosting Provider 527. Wedding Photographer 528. Wedding Planner 529. Weight Loss Seminars 530. Water Pumping Service 531. Website Design and Management 532. Wedding Coordinator 533. Weight Loss Center 534. Welding / Welder Business 535. Wholesaler 536. Window Blind Specialist 537. Window Washing Service 538. Workers' Compensation Consultant 539. Writing Business 540. X - Ray / Scanning Business

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