Making Money Online

Anyone who is employed has dwelled over this at some point or the other, some far more than others. That's the kind of allure 'being your own boss' holds for most people.

The sense of achievement in owning a set-up, and being chiefly responsible for it's future is the kind of kick one can never derive from a job. But, greater returns always involve greater risks.

One needs to plan and execute with a high degree of detail to counter the many challenges a business throws at the entrepreneur.

Keep a lookout for these pointers if you finally get down to executing your dream of self-employment:

Being fed up with your current job isn't a good enough reason to start-up
It is more than a full time responsibility. Work does not end with office hours, and chances are that initially you will see more hardships than success. It takes intense commitment to stick it out through these tough times, especially when you know that your past job pegged you at a certain market value, which you are not matching with this new business.

More importantly, a half-baked decision to start a business not only leave you with little chance of doing well, it also jeopardises your options of getting back to as good a job as the one you left.

Understanding the nature of a business
The first step is to understand that businesses don't start with a great idea, or a breakthrough innovation, every business starts with the customer. If you are looking to get into a business as an inventor, try finding a client who'll pay you to develop something they need. Most of these clients will let you keep the rights over the invention, so that you can sell it to other clients later.

Entrepreneurship = 60 hours of work
This might be easier than it seems, and in business, success has got to do more with creating such opportunities and making the most of them.

Check for these skills:

Engineering -- the skill to invent and develop new products (or services)
Manufacturing -- the skill to deliver products, consistently and reliably, with quality, service, and price
Selling -- the skill to sell the products
Business -- the act of making a profit by doing the first three
While starting a business, the skills you will surely need are engineering and selling.

The longevity and profitability of the business are usually determined by the manufacturing and business skills. The level of competency you choose for the business decide how refined these individual skills need to get.

In case you choose the competition space as a local market or a niche industry, then the focus goes up drastically on one skill, while going down to a basic hygiene on the rest.

Breaking the 'notion' barrier
All your education and work-experience must have given you a perspective on how businesses work. These experiences, and the notions that they bring along with it have their own limitations. They don't quite give you the complete picture.

Also, most of this 'experience and knowledge' constitutes the answers to yesterday's problems. It might not necessarily apply to what goes on today. And there is an even stronger possibility of this know-how getting obscure in the future.

Finding the funding
In the ideal case scenario, find someone who will be willing to pay you for what you are currently doing. This is a critical stage for most businesses. Do not let go until you are convinced that you have exhausted all opportunities.

Got what it takes to be an entrepreneur?
The next best option is to find someone who has a similar business need. Then go about designing a solution for him. Try brainstorming further to keep customisation to a minimum so that the solution can be taken to other potential clients with minimum modification.

The benefit of having partners
There is only that much one person can do.

Like most businesses have separate business units or heads such as manufacturing, marketing etc., the skills needed to run most businesses too are quite varied.

What are the odds that you will be adept at the technical, marketing, selling, business and political aspects of the business? Besides, having partners makes sense on many other levels. Firstly, as the number or people owning the business goes up, the risk and intensity of a loss goes down. You can stay on in the market for longer in case of a lean period.

Also, since the business heads will most likely be split among the partners, one can focus on a couple of areas while doing complete justice to them and focusing on nothing else. This makes the entire business a lot more competent.

Don't quit your day job, just yet

You don't need to take the big jump straight away. Building a business takes a lot of time and groundwork. Spending up to an hour a day after work is a feasible option initially. It also helps you get a feel of what a business must be like.

Moreover, getting in a pay cheque every month is always the smarter option, especially when you might not have a steady income for some time to come. A few things you can do alongside work might be:

Examine the feasibility of the business model
Buy market research target market
Understand the selling patterns of related products
Get options on funding
Develop a marketing plan for various budget constraints
Talk to other entrepreneurs and get some tips off them
Try getting inputs from a venture incubation centre
Get a transition plan ready

Consider the worst-case scenario, and work on a feasible exit clause even for that. Chart out the future, the incoming revenue streams, how long do you plan to be in the business, exit options etc. Also, have a financial cushion in the form of some investments that you leave untouched while at the business.

Starting a business? Say goodbye to your ego
Try roping in venture capitalists at the earliest stage in the business to enable you to work under lesser financial pressure.

Tomorrow is just a second away from today
There is only that much preparation that one can put in. Stop finding excuses to delay getting into the business. You cannot learn swimming from a textbook. Take the plunge. Learn what works for YOU and what doesn't. There is no right or prescribed way to run a business. In fact, there are as many ways as there are people running successful businesses.

Also, this is as good a time as any to be an entrepreneur. The economy is growing; the government is supporting new ventures through various measures in the recent budget. And most importantly, the number of avenues for growth and the kind of opportunities available are unparalleled today.

So go on, what's stopping you from being your own boss?

From :rediff news

For all those who are going to become entrepreneurs for the first time and are at the outset of beginning a new venture, keep this in mind: "Money has no value if you are not happy. Be sure to have fun, enjoy life, and take time for yourself." If you are in immediate need of cash, then you have made the wrong decision by taking up entrepreneurship. But if you have enough to live (or more), and want to pursue your dream of doing something you have always wanted to do, then this is the right place for you. When you are going to begin a new venture, you will have to face numerous challenges. I feel that these challenges are the good part of entrepreneurship, as it keeps you alert and boredom-free and more interestingly, gives success its sweet taste. In this article, I attempt to describe the ways to become a successful entrepreneur with an emphasis on ‘happiness' and ‘satisfaction.'

The very first lesson that we need to remember before venturing out is that we should derive pleasure from what we are doing rather than focus exclusively on the material results that are expected. Take up a business in the field of your liking rather than one which is ‘money making.' Remember that entrepreneurship is not like a salaried job where you get paid at the end of every month for that month's work. Income from new ventures is very erratic, especially in the initial periods. Please do not expect an income from your business initially. Derive pleasure from what you are doing: Find thrill in meeting deadlines of customers, satisfaction in delivering high quality products, enthusiasm in tackling tricky challenges instead of repeatedly asking yourself, "When do I get paid for this? Will this ever work out? Why is it that all the others around me (except for me) are so successful?" For the safety and security of you and your family, you may keep a deadline and decide that you will try your level best for your business to take off before that deadline, or else retire to your previous (safer but less exciting) occupation.

Here are qualities that you must develop (remember that no one is born as an entrepreneur...they develop these skills with practice and perseverance...so even you can do it!) to become a successful entrepreneur.

Passion for work: You must have a passion for the business that you are doing. Rather than doing it just for money, do it for thrill and satisfaction (as mentioned before). I am not asking you to do free social service...being a businessman, you need to make money...but thinking only about money and getting overanxious about it will only land you in trouble. Money will automatically flow if your hard work and sincerity is present in your work.

Freedom from depression: It is a common phenomenon that most people get depressed and frustrated within a short period of starting their new venture. The reason may be erratic income, the complications of being involved in the business world, stiff competition, lack of leadership qualities, family pressure, etc. I feel that if the reason for your frustration is anything other than urgent need of money, then say to yourself, ‘The darkest time of the day is just before dawn' and hold on to your business for some more time. Miracles may happen.

Decision making: Make bold decisions whenever required, without delay. Great opportunities come rarely...delay in making decisions may result in you missing them. But remember to think twice before making crucial decisions...be wise.
Creative thinking: Applying creativity to your business is crucial for your firm's survival. Try to find creative solutions to problems you are facing, apply creativity to manage your employees, and put creativity into the products you are manufacturing. Creative ideas can revolutionize the world and also your own lives! Several sites and books offer courses in improving creativity. You may go through them if you feel you are not very creative. Planning and organization: Planning and organization are crucial ingredients of success, not only in business but in any field. Everyone (including animals) work, but the reason why certain people are successful and most others are not is that successful people do well planned and organized work. They clearly know what has to be done, when it has to be done and how it has to be done. Plan what has to be done when and do it in an organized way, whatever may be the assignment. Developing these two qualities alone can completely change your present life into a marvelous one. Successful people are experts in time management. If you feel you are a bad time manager, then you better study books on time management or attend time management workshops. Without this quality, no achievement is possible.

Risk taking: Taking calculated risks is very important for stable growth of your firm. Businessmen who don't take risks fail to succeed or even if they succeed, their success is very limited.

Careful about money: Entrepreneurs are very careful about managing money and don't waste unnecessarily initially. Once your business has grown into a big one and you have lots of money, you can enjoy it the way you want to, but be careful not to spend too much during the initial stages.

Work for long hours: You must prepare yourself to be able to work for long hours initially. It is crucial for the stable development of your venture. Try to keep all your customers satisfied and deliver services in time. Remember that customer satisfaction is the success secret of any successful firm. Try to deliver good service to your customer promptly. You will surely lose your customers if you can't deliver products on time.

Desire, dedication and discipline: These three Ds are highly necessary for you to become a happy, successful entrepreneur. They can be developed easily with constant practice and perseverance.

Human relations: Being an entrepreneur, you will have to interact with a lot of people. Be it your subordinates or customers or partners, proper communication skills and attitude is very important. Remember, "85% of success in life is due to the ability to communicate and get along with people." Try not to get angry with your subordinates very often; it spoils their spirit. Compliment them whenever they do good work...remember praising doesn't involve any expenses but it raises energy levels to an amazing extent. Work with your employees as a team. And while dealing with customers, ensure 100% customer satisfaction and that you become an indispensable provider. This will ensure two gains: The customer will come back to you whenever he is in need of more products and he will refer his friends to you and the chain continues (and hence the number of customers multiplies without you wasting a single penny on advertising).

From : How To Do Things

Whether you are planning to start a brand-new business, expand an existing company, or get financing for a business venture, you will need to write a business plan. A business plan not only lends your business a sense of credibility, but also helps you to cover all your bases, increasing your chances of success.

Although writing a business plan can be a lengthy, intimidating project, it is not necessarily difficult. Here is an overview of how to write a successful business plan.

What to Include in Your Business Plan

Your business plan needs to demonstrate that you have thoroughly considered all aspects of running your business. To that end, the standard business plan has nine major sections, covering everything from your business’s mission statement to a detailed financial analysis.

Executive Summary. The first – and most important – section of your business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees – even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched and written the other sections.

One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan: Those four sentences are responsible for not only defining your business, but also capturing the interest of your reader.

The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals.

This section is a candidate for a bulleted format, which allows you to list main points in a manner that is easy to scan. Avoid using too much detail – remember, this section is a summary. A page or two is usually sufficient for an executive summary.

Market Analysis. The next section of your business plan focuses on market analysis. In order to show that your business has a reasonable chance for success, you will need to thoroughly research the industry and the market you intend to sell to. No bank or investor is going to back a doomed venture, so this section is sure to fall under especially close scrutiny if you are looking for financing.

Your market analysis should describe your industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market – that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as:

Distinguishing characteristics
The needs your company or product line will meet
What media and/or marketing methods you’ll use to reach them
What percentage of your target market you expect to be able to wrest away from your competitors
In addition, your market analysis should include the results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors.

Company Description. After your market analysis, your business plan will need to include a description of your company. This section should describe:

The nature of your business
The needs of the market
How your business will meet these needs
Your target market, including specific individuals and/or organizations
The factors that set you apart from your competition and make you likely to succeed
Although some of these things overlap with the previous section, they are still necessary parts of your company description. Each section of your business plan should have the ability to stand on its own if need be. In other words, the company description should thoroughly describe your company, even if certain aspects are covered in other sections.

Organization and Management. Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section should include:

The division of labor – how company processes are divided among the staff
The management hierarchy
Profiles of the company’s owner(s), management personnel, and the Board of Directors
Employee incentives, such as salary, benefits packages, and bonuses
This goal of this section is to demonstrate not only good organization within the company, but also the ability to create loyalty in your employees. Long-term employees minimize human resource costs and increase a business’s chances for success, so banks and investors will want to see that you have an effective system in place for maintaining your staff.

Marketing and Sales Management. The purpose of the marketing and sales section of your business plan is to outline your strategies for marketing your products or services. This section also plans for company growth by describing how the growth could take place.

The section should describe your company’s:

Marketing methods
Distributions methods
Type of sales forceSales activities
Growth strategies
Product or Services. Following the marketing section of your business plan, you will need a section focusing on the product or services your business offers. This is more than a simple description of your product or services, though. You will also need to include:

The specific benefits your product or service offers customers
The specific needs of the market, and how your product will meet them
The advantages your product has over your competitors
Any copyright, trade secret, or patent information pertaining to your product
Where any new products or services are in the research and development process
Current industry research that you could use in the development of products and services
Funding Request. Only once you have described your business from head to toe are you ready to detail your funding needs. This section should include everything a bank or investor needs in order to understand what type of funding you want:

How much money you need now
How much money you think you will need over the next five years
How the money you borrow will be used
How long you will need funding
What type of funding you want (i.e. loans, investors, etc.)
Any other terms you want the funding arrangement to include
Financials. The financials section in your business plan supports your request for outside funding. This section provides an analysis of your company’s prospective financial success. The section also details your company’s financial track record for the past three to five years, unless you are seeking financing for a startup business.

The financials section should include:

Company income statements for prior years
Balance sheets for prior years
Cash flow statements for prior years
Forecasted company income statements
Forecasted balance sheets
Forecasted cash flow statements
Projections for the next five years – every month or quarter for the first year, with longer intervals for the remaining years
Collateral you can use to secure a loan
The financials section is a great place to include visuals such as graphs, particularly if you predict a positive trend in your projected financials. A graph allows the reader to quickly take in this information, and may do a better job of encouraging a bank or investor to finance your business. However, be sure that the amount of financing you are requesting is in keeping with your projected financials – no matter how impressive your projections are, if you are asking for more money than is warranted, no bank or investor will give it to you.

Appendices. The appendix is the final section in your business plan. Essentially, this is where you put all of the information that doesn’t fit in the other eight sections, but that someone – particularly a bank or investor – might need to see.

For instance, the market analysis section of your business plan may list the results of market studies you have done as part of your market research. Rather than listing the details of the studies in that section, where they will appear cumbersome and detract from the flow of your business plan, you can provide this information in an appendix.

Other information that should be relegated to an appendix includes:

Credit histories for both you and your business
Letters of reference
References that have bearing on your company and your product or service, such as magazines or books on the topic
Company licenses and patents
Copies of contracts, leases, and other legal documents
Resumes of your top managers
Names of business consultants, such as your accountant and attorney
Writing a Successful Business Plan

Despite the quantity of information contained in your business plan, it should be laid out in a format that is easy to read. Just like with any piece of business writing, it is important to craft your business plan with your intended audience in mind – and the bankers, investors, and other busy professionals who will read your business plan almost certainly won’t have time to read a tedious document with long-winded paragraphs and large blocks of text.

Business plans for startup companies and company expansions are typically between twenty to forty pages long, but formatting actually accounts for a lot of this length. A strong business plan uses bullet points throughout to break up long sections and highlight its main points. Visuals such as tables and charts are also used to quickly relay specific information, such as trends in sales and other financial information. These techniques ensure that the reader can skim the business plan quickly and efficiently.

Think of your audience as only having fifteen minutes to spend on each business plan that comes across their desks. In that fifteen minutes, you not only have to relay your most important points, but also convince the reader that your business venture merits a financial investment. Your best bet is a well-researched business plan, with an organized, easy-to-read format and clear, confident prose.

From : How To Do Thing