Listen to a BIZCAST Training Presentation on :
Working from Home
Subjects covered:
Why people work from Home-Is your business idea suitable as a Home Based Business-Have you considered the Family-Are you a person who will work well in a in a home environment-What type of business should you start-Will your Home Based business make a profit-Setting Up.

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Listen a BIZCAST Training Presentation on :
Time Management.
Subjects covered:
Inadequate Planning-Attempting to do too much-Paperwork-Communication-Telephone Interruptions-Procrastination-Refusal to Delegate-Disaorganisation-Inability to say no.

 


Finance

While poor management is often the reason businesses fail, inadequate or ill timed finance is a close second. When you are starting a business, sufficient ready capital is essential.
Every business is different, and has its own specific cash needs.

While some can be started on a shoestring budget, others require considerable investment in inventory or equipment. It is important to know that you have enough money to launch your business venture.

To determine your startup costs, you must identify all the expenses that your business will incur during its startup phase.

I would suggest that raising lots of money does not necessary mean the success of your business. Be very careful about taking on too much debt because you are committed to paying interest and principal repayments which are ongoing costs.

I am not saying that you do not raise money for your business as money is the oil that makes the wheels of business turn but just be careful.

Banks are still the main source for funding for businesses and as most people already have a personal relationship with a bank this would be the first call you would need to make although they often require some sort of security usually property.

Family ,friends and acquaintances can be a source of finance but you must be aware of your responsibilities, if you were to borrow money from these people. Make sure that your financial projections and profitability of your business is correct and I would suggest you get a chartered accountant to check your figures..

New Zealand Trade & Enterprise has some very useful information on funding, so if you go to www.biz.org.nz and you will see a heading Grants & Financial Assistance which is a good source of information on funding for businesses although startup funding is still difficult to obtain.

Can you afford the early cost of operating a business

In the first few months of your business operation how do you cover your living expenses when you have to build up the business and the cash isn't yet coming in?
 Without sufficient savings, you may have difficultly paying the mortgage and even putting food on the table although if your partners is employed and creates a personal income that can be of benefit in that it will help cover your household expenses and would not require you to take money out of the business so it is important that your partner supports your business venture.
 Do you have a business partner with whom you could come to an arrangement that one works to pay both your bills while the other concentrates on building the business?
 
Another way is to go part time at work for say 2/3 days per week that will provide money to cover you personal expenses.

Employers can be quite understanding and it can suit them to have someone part time rather than losing their expertise altogether, unless your business is something that will take work away from your employer.

If that's not possible, do you do the kind of work you could carry on doing on a freelance basis?
You could reduce the amount of work you do as the business grows.

The biggest mistake many small business people make in the beginning is taking too much money out of the business to live on, so go through your living expenses with a fine tooth comb and avoid the urge to buy a new car and move to a bigger house until you're on a firm financial footing.