A Simple Business Plan
A Simple Business Plan
When I first started running with business plans back in the late 1970s, the average plan was much longer and more complex than what I see today. That might be because business plans are more common than they used to be--they're used more and more often and by more people. It might as well be a matter of trends among bankers and investors who read business plans. Or it could be because people have less time to waste wading through text files!
For whatsoever reason, the trend in business plans these days is to go back to the fundamentals, with good projections and solid analysis. An "easy to read quickly" format is more significant than ever. If you require people to read the business plan you develop--and most people do--then my best advice to you is keep it simple. Don't confuse your business plan with a doctoral thesis or a life task. Hold on the wording and formatting straightforward, and keep the plan shortly.
But don't confuse simple wording and formats with simple thinking. The reason you're keeping it simple, isn't because you haven't got your idea fully. You're keeping it simple so you can get your point across quickly and easily to whoever's reading it.
With that in mind, let's go down to some specifics when it comes to simplifying your plan.
Rule in your prose. Effective business writing is easy to understand. People will skim your plan-they'll try to understand it while talking on the phone or going through their e-mail. Pull through the deep prose of the great American novel you'll write later. When you're crafting your plan, remember these points:
Don't use long complicated sentences, unless you have to for meaning. Short sentences are ok, and they're easier to read.
Avoid buzzwords, jargon and acronyms. You may know that NIH means "not invented here" and KISS stands for "keep it simple, stupid," but don't assume anybody else makes out.
Use simple, straightforward language, like "use" instead of "utilizes" and "then" instead of "at that period in time."
Bullet tips are good for lists. They help readers digest information more easily.
Avoid "naked" bullet points. Flesh them out with brief explanations where explanations are required. Unexplained bullet points can be frustrating.
Keeping it short. The medium length of most business plans is shorter now than it used to be. You can probably handle everything you need to convey in 20 to 30 pages of text plus another 10 pages of appendices for monthly projections, management resumes and other details. If you've started a plan that's more than 40 pages long, you're probably not summarizing very well.
Of course there were exceptions to the rule. I lately saw a plan for a chain of coffee shops, for example, that included photos of the proposed location, mock-ups of menus and maps of other proposed locations. The graphics made the program longer, but they added real value. Product shots, placement shots, menus, blueprints, floor plans, logos and signage photos are useful.
Use business charts. Create your important numbers easy to find and easy to understand. Use summary tables and simple line charts to highlight the main numbers. Make the related details easy to notice in the appendices. Also...
Use bar charts to read, at a minimum, sales, gross margin, net profits, cash flow and net worth by year.
Three-dimensional bars look slicker, but two-dimensional bars are usually easier to understand. Make sure the numbers are real.
Stacked bars make totals easier to see. If your sales divide into segments, stack the bars to show the total.
Use pie charts for market share and market segments.
Record tasks and milestones as horizontal bars with labels on the left and dates along the top or bottomMost people predict this a Gantt chart.t. Indicate only the major tasks and milestones, because too many details make these charts hard to read.
Always set the source numbers close to the charts in a summary table so readers can reference them quickly and recognize the numbers in the charts. And never leave a business plan reader unable to discover the source numbers on a chart. That's so frustrating.
Don't use a chart without referencing it in the textbook. If source numbers aren't totally obvious in the summary tables, make sure you specify which appendices contain the detailed numbers.
Love the overall look and feel. Away from the wording, you also want the physical look of your text to be simple and inviting. So my advice to take:
Stay put to two fonts for your text. The typeface you use for headings should be a simple sans-serif font, such as Arial, Tahoma or Verdana. For the body text, you should probably employ a standard text font, like Century, Times Roman or Book Antigua.
Avoid making the fonts too small. Just a few of the more readable fonts are fine at 10 points; most of them are better at an 11 or 12 point size.
Use page breaks to separate sections and to separate charts from text and to highlight tables. When in question, go to the next page. Nobody worries about having to turn to the following page.
Use white space liberally. Words crammed together into little spaces are uncomfortable to read.
Always use your spell-checker. Then proofread your text carefully to be certain you're not using a properly spelled incorrect word! Double check that your text numbers match those in your tables.
Ways to Teach Kids About Money
Ways to Teach Kids About Money
Here are 15 simple ways to help educate children about personal finance and managing money.
Introducing Kids to Money
Money gives people -- both young and old -- decision-making opportunities. Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend. Everyday spending decisions can have a far more negative impact on children's financial futures than any investment decisions they may ever make. Here are 15 simple ways to help educate children about personal finance and managing money:
As soon as children can count, introduce them to money. Take an active role in providing them with information. Observation and repetition are two important ways children learn.
Communicate with children as they grow about your values concerning money --- how to save it, how to make it grow, and most importantly, how to spend it wisely.
Help children learn the differences between needs, wants, and wishes. This will prepare them for making good spending decisions in the future.
Setting goals is fundamental to learning the value of money and saving. Young or old, people rarely reach goals they haven't set. Nearly every toy or other item children ask their parents to buy them can become the object of a goal-setting session. Such goal-setting helps children learn to become responsible for themselves.
Introduce children to the value of saving versus spending. Explain and demonstrate the concept of earning interest income on savings. Consider paying interest on money children save at home; children can help calculate the interest and see how fast money accumulates through the power of compound interest. Later on, they also will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own.
Allowance and Spending Decisions
When giving children an allowance, give them the money in denominations that encourage saving. If the amount is $5, give them 5-1-dollar bills and encourage that at least one dollar be set aside in savings. (Saving $5 a week at 6 percent interest compounded quarterly will total about $266 after a year, $1,503 after 5 years, and $3,527 after 10 years!)
Take children to a credit union or bank to open their own savings accounts. Beginning the regular savings habit early is one of the keys to savings success. Remember, don't refuse them when they want to withdraw a portion of their savings for a purchase--This may discourage them from saving at all. You can also introduce children to U.S. savings bonds. Bonds are still a good value, costing one-half their face value and earning interest that in some instances will be tax-free if used for a college education. Perhaps more importantly, when given as a gift, bonds will not be spent immediately, reinforcing saving and goal-setting lessons.
Keeping good records of money saved, invested, or spent is another important skill young people must learn. To make it easy, use 12 envelopes, 1 for each month, with a larger envelope to hold all the envelopes for the year. Establish this system for each child. Encourage children to place receipts from all purchases in the envelopes and keep notes on what they do with their money.
Use regular shopping trips as opportunities to teach children the value of money. Going to the grocery store is often a child's first spending experience. About a third of our take-home pay is spent on grocery and household items. Spending smarter at the grocery store (using coupons, shopping sales, comparing unit prices) can save more than $1,800 a year for a family of four. To help young people understand this lesson, demonstrate how to plan economical meals, avoid waste, and use leftovers efficiently. When you take children to other kinds of stores, explain how to plan purchases in advance and make unit-price comparisons. Show them how to check for value, quality, repairability, warranty, and other consumer concerns. Spending money can be fun and very productive when spending is well-planned. Unplanned spending, as a rule, usually results in 20-30 percent of our money being wasted because we obtain poor value with our purchases.
Allow young people to make spending decisions. Whether good or poor, they will learn from their spending choices. You can then initiate an open discussion of spending pros and cons before more spending takes place. Encourage them to use common sense when buying. This means doing research before making major purchases, waiting for the right time to buy, and using the "spending-by-choice" technique. This technique involves selecting at least three other things the money could be spent on setting aside money for one of the items, and then making a choice of which item to purchase.
Buying Smart
Show children how to evaluate TV, radio, and print ads for products. Will a product really perform and do what the commercials say? Is a price offered truly a sale price? Are alternative products available that will do a better job, perhaps for less cost, or offer better value? Remind them that if something sounds too good to be true, it usually is.
Alert children to the dangers of borrowing and paying interest. If you charge interest on small loans you make to them, they will learn quickly how expensive it is to rent someone else's money for a specified period of time. For instance, paying for a $499 TV over 18 months at $31.85 a month at 18.8 percent interest means the buyer really pays about $575.
When using a credit card at a restaurant, take the opportunity to teach children about how credit cards work. Explain to children how to verify the charges, how to calculate the tip, and how to guard against credit card fraud.
Be cautious about making credit cards available to young people, even when they are entering college. Credit cards have a message: "spend!" Some students report using the cards for cash advances and also to meet everyday needs, instead of for emergencies (as originally planned). Many of those same students find themselves having to cut back on classes to fit in part-time jobs just to pay for their credit card purchases.
Establish a regular schedule for family discussions about finances. This is especially helpful to younger children--it can be the time when they tote up their savings and receive interest. Other discussion topics should include the difference between cash, checks, and credit cards; wise spending habits; how to avoid the use of credit; and the advantages of saving and investment growth. With teenagers, it's also useful to discuss what's happening with the national and local economies, how to economize at home, and alternatives to spending money. All of this information will be important as they take on more responsibility for their own financial well-being.
Adapted from "Dollars and Sense," in the April 1999 issue of Our Children, the official magazine of the National PTA®.
When we are wrong in debt
Lots and often I find people complaining because of its debt problems. Indeed, the debt is not a product that is popular, but today more and more people use it. In fact, no doubt, owes its ease in making people more and more are taking these alternative funds, and as a consequence also an increase in debt problems.
I never like to blame their products, meaning that the actual debt is never wrong. But which one is the person using it. Let's discuss a few little mistakes 'debtor'.
1. One of select products
As well as products that deliver results, the products also have many types of debt. No debt is created to help the borrowers for business financing. There is another debt products that are designed for home financing, there is for the financing of the profession, vehicles, and so forth.
Many people take out of debt by simply looking at how much money he earned and how easily the debt is liquid. In fact to keep in mind, the easier the debt was liquid, it will be the higher the risk borne by the bank, and as a consequence they will increase interest as compensation for the risk that he is ready to receive.
If you have time, compare the debt for mortgages with terms that 'he' complicated and require collateral, the credit versatile also able to buy a house but unconditional grace and assurance. Where higher?
So if you owe, owe it according to his needs. When to look for business loans for the business, when to the house is better and beneficial if we take mortgages and to finance consumption and goods that can not be used as collateral, so-so use unsecured loans as products.
2. Using the Wrong Debt
Debt is defined as the use rights prematurely, and credit is defined as deferred payment. Debt and credit are created basically to help someone obtain the right prematurely, and pay it off or pay later. So, basically, we may owe to the two main conditions: first we might owe if you have the funds to pay for them later on and secondly we should owe if we believe and commit will no sources of funds that will go in the future to pay for it.
Thus, it should be before people decide to owe, he was believed capable of carrying out one of the two requirements above. So if it were so would have been possible failure in debt. But why this can not be implemented? Since most people consider debt as an additional cash. What is the proof? easy. Consider the pattern of our finances, when we decided to swipe a credit card, why do not directly pay it? when payday? Or if she knew we could not afford to pay the debt first why should add new debt? Let alike ponder.
3. Wrong Debt Management
Sometimes people do not realize that the problem is in debt because of the wrong person to manage (manage) the debt. We do not discuss how to use here, but we want to talk about the management of our debt.
A simple example, many people underestimate the problem debt payment date. For example a person who receives a salary on the 25th of each month, never schedule a bill debts in the 15th example. Why is that? Because then the payment of debt repayment could not be prioritized because it is usually the salary money has run out before the 15th of each month. As a result often must close the hole and dig a pit to pay the debt, or if the credit card to pay for always minimal because this simple mistake.
So try to pay the debt you are not far from the date of earning and make it as a priority.
Deciding to take the debt is not a fault, but taking debt without calculation will plunge. Do not let the bad things that happened, I wish you all not one of 'debtor' to the above error.
5 Tips to Manage Salary Correctly
5 Tips to Manage Salary Correctly
The salary is the salary of the effort you put in during a month in the company you work as you can each month. You have to manage your exact salary each month. If you are not going to rush to meet your needs for a month.
For those of you who have problems with arranging your monthly salary, the following 5 tips to manage your salary every month!
1. Check the amount of salary received
Check the amount of your salary if it is correct or not when payday. If not, you could ask the parties to give you a salary.
2. Sorting out finances for a monthly fee
Separate the money to pay the cost to be dikelurkan each month, such as electricity charges, water charges, telephone charges, and expenses of daily life - today.
3. Create a Financial Plan
Make a financial plan needs to be done. Plan every expenditure you spend and compare it to your income. You can also plan for future investments.
4. Saving Set aside some of your income for savings
Saving money is important. You can save up to go on vacation, saving for the future, or saving for emergencies.
5. Charity
Charity will not make your shortcomings. Beramalah bit for the needy. That way you participate in social activities that are beneficial to you and a lot of people in need.
That's how you can do to manage your monthly salary. Immediately do from now and feel the benefits.
For singles, Avoid Annoying Habits Finances
For singles, Avoid Annoying Habits Finances
The single or unmarried was a time free to have fun with the income you have, because it does not need to think about the cost that many households. Therefore, they are still not married sometimes spending money for personal pleasure.
It is certainly fine to do. But remember, if you are among them make sure you do not spend too much could cause you to have financial problems.
There is no harm while still young, you have fun with the income they have. But investing and managing money for the future was important. Of course you do not want in old age you are having financial problems.
The following habits to avoid in managing your finances is still single.
1. Not having savings
Saving is an important habit to you. Never combine a savings account with a salary account. To be more disciplined in saving, create special savings for savings that is different from the salary. This avoids the savings used for the public interest.
2. Do not Have Financial Interest
Indeed, the single did not need too concerned about financial problems, because they feel no responsibility other than personal needs. But, should draw up a plan and your financial goals, such as making a savings plan to travel or to continue their studies. This trains you to be responsible for the finances you have.
3. Do not Have Investment
Did you know berivestasi it is important? Still single does not mean you can not get to start investing. Not necessarily that the return value is too high because the risk is too high. Start trying to invest as simple as precious metals, mutual funds, or deposits.
4. Extravagant
Many people who are single to be extravagant because they feel free to use income. Like, every day eating out or frequently shop that makes you money continues to flow.
You may do these things, but not too often, for example, lunch or dinner at weekends only. Avoid wastage, try to better manage your finances. Of course you will not know what will happen in the future.
Here are some things you can spend your money while still single. Use your time wisely during your single. May be useful.