Business Planning part 2: Expenses. When creating financial statements for your business plan to present to a bank (please do this even if you don’t need outside funding), I suggest using the best estimates possible in figuring all expenses for the first two years. When you have those figures, add an additional 20% to inventory, advertising and promotions, misc. expenses and payroll.
I highly recommend in the business planning process to go around your city and ask non-competing businesses about ’surprises’ that they didn’t think about when figuring expenses. One thing about small business owners is that we like to talk about our business, the good or the bad. You will be surprised at what people tell you.
For example, when I was looking for a location for my retail business, I asked a couple of owners in an area I was interested in at the time. Two of them simply said, “Don’t put your business here. We are moving…the area is going downhill”. Wow, thanks.
Back to expenses. One surprise for me that I didn’t figure in my business plan was shipping. I don’t know why I missed it, but I did. It’s expensive and if you have an online presence, it’s very expensive. Talk to your accountant about figuring accurate Federal and State taxes for each month or quarter. It’s not your money, so don’t get use to seeing it in your bank account, because it will soon be gone.
Get very specific about your expenses. They add up fast: to the window cleaner who comes once a month to lightbulbs. And bribes.
…would be dead right now if I was in charge of feeding the community. I did have a string of bad luck though. The day I planted the seeds it was 80 degrees, but the ground froze three days later. I waited and waited until last week I noticed my glimmer of hope….the snow peas. The carrots have also begun to peak out of the dirt. So not a total lost cause, but I think the tomatoes and green beans are gone. Who’s ready for a salad?
Starting today, and every Monday, I will share a thought about my experience in small business. Topics will cover all categories from the business planning process, finances, customer service, marketing and a few rants thrown in here or there. Hopefully, these little nuggets will be insightful to those who are thinking about/planning to open a small business. I will try to paint an honest picture of the small business lifestyle. My experience is in the retail industry, but most things that will be covered are pertinent to various industries and vocations.
Thought (one): I think that it makes the most sense for my first post to be about the business planning process. Before writing a business plan, which I highly suggest doing even if you don’t need outside funding, is pick at least three banks in your area and interview them. Find out what they look for in a business plan. I promise you that each bank will be different and edit your plan accordingly for each. Just because a bank offers you a loan, doesn’t mean that it is the best bank for you. This is an important relationship that you will have for a long time. They aren’t doing you a favor for giving you a loan. You earned it, so treat the interview time figuring out if you want to do business with them, not the other way around. Banks will be impressed that you took the time to think about talking with them before writing a plan and your potential business relationship with them is already positive and you have set yourself apart in their eyes.
La Blogotheque’s concept is to catch a band on tour and film them before or after they go on stage in creative and innovative ways. The spontenaeaty of the usually unplugged performance is a nice reminder that music is an art and not just another commodity to consume. I highly recommend watching Arcade Fire’s two film sessions, one in a freight elevator and another in the middle of the concert crowd before the show. Even if you don’t like their music, you will appreciate the creative effort and end result. (via yewknee)
Ok, I know. The title of this blog post may offend some of you and maybe even Toby. But after seeing one of his favorite machines’s distant cousin personafied as a swimmer, my actions are unstoppable. (via yewknee)
Wow. Caught the Mute Math show at the Granasty in Lawrence last night. Whew. Ears are still ringing this morning. If you ever get the chance to see them next time they are in your town, do it. Please, just do it. You will be entertained and rocked. Each musician didn’t miss a note, the drummer was freakin’ insane…and insanely good.
I knew the show was going to rock when the drummer came out on stage and duct taped his headphones to his head. I think he went through 10 sets of sticks. The show also involved hand-stands on keyboards, jumping off a tower of drums, amps and people, and I think every member of the band played drums or percussions at some point in the show.
File this concert into my top 10 shows of all time.
PS: You know that most attending are Christians when you don’t have to wait in line at the bar and everyone says “Excuse me” or “Oh, sorry man” when they step on your foot or knock your elbow and you spill your beer all over your hand.
