Business Secrets

  by Dr.Lubna Zubair Alam

(A) AN INTRODUCTION TO BUSINESS:

What the "  Max Amsterdam says that "Business is the art of extracting money from another man's pocket without resorting to violence. Literally business is considered as activity but to perform economic activity. Well, no one can think about business without thinking about what, when, how ,why, and where about Business, That's called the Business Plan, Should be not virtual but WRITTEN. Without a plan you are not doing business but something else b/c you get loss loss and loss of money time and health, nothing other than this. The greater the results you can achieved by how much strong the business plan is. Many companies on internet are selling start ups to working plans at good cost. Partnership is Up to you and your financial condition that u need a partner or want to work solely. Partnership may helpful or harmful but successful individual actions in business seems very little, Even business is nothing without 2nd person because this is a process of give and take.

(B) BUSINESS PLAN:

Could be a paragraph to full report of your future plan taking your business, up to you whether you are handling yourself or putting your plan before your financer/s, in 2nd case as mentioned the plan will be attractive for the financers so that they view their profit in the form of this plan because financers afraid of amateur money handling.

Let us define you above five questions of business plan:

1-WHAT? what product you have for your client or what services you are providing them, what is your strategic planning for your business. A proper selection from your mind you have to select product or list of many items and from market demand. In spite that  you have no proper idea what to sell and want to do business, you need to survey your local market to check, what are the products that people are buying in a great number and what are your abilities towards that work.

2-WHERE? Where you will be discussing your business, where your customers belong to and where you should place your business. The points where you may succeed or can have competition more, can fail.

3-HOW? How u you manage your capital, maintain your accounts, how you inhibit and decreases the chance of break through. How you compete with your competitors and raise your flag up, and most important how to maintain quality at the best degree of your business (quality control). commerce or E-commerce people you required for best handling of financial methods as well as accounting. How to impress the clients using full intelligence of attracting and quality making.

4-When? when it is best to start business and presents in front of others is worth to you. When you develop something new for market and when you need to take a turn for survival. More, when you are updating financially, adding more or not?

5-WHY? Why people comes to you, Is there any specialty or different in you which they cannot find any where or hard to find. Are the services are of best prices they can hardly found. Why they trust on you, Have you established your marked reputation among business society and market.

KEYS OF BUSINESS PLAN:

It is never too late to plan business because if u thought u have poor conduct, you can repeat planning. Always remember financial data is the back bone of your plan, so stick with these and make a great proportion of income, balance sheet and cash flow statement.

(C) Business Essentials:

Before starting a Business One should  know the descriptive introduction to the modern business world and an interpretation of the functional areas of business. Examination of  the development of the business firm and its environment helps in learning. This is good to know definitions and having ability to discuss at the level of basic, If unable to discuss but should  know the terminologies and concepts of business. Understanding and demonstration of fundamental economic ideas and principles. what is the relation b/w Business and social sciences, Demonstration and awareness of the interrelationship between business and other social sciences and b/w business and political world is essential. Knowing world's economy and financial system is necessary. Critical thinking improves the business skills. for analysis Annual reports of companies helps very much. Conducting research to the company's mission, history, type of products offered, the economic environment in which the company operates, the company's organizational structure or restructuring efforts, and its financial condition.

(D) PRODUCTIVITY:

Depends upon the number of workers and machineries, and  Skills and qualities of both will be counted in this major component of business management. It is necessary to develop a proposed new product/service, or modify an existing product/service to add to the company's product line. The new product/service must be realistic and technologically feasible. Justify reasons for selection and show how it will be handled in the marketing mix. Customer's feed back tells how much the products are consuming (sold out) and are in stock (unused/un sold). work Speed of all components + Peoples are responsible for low or great productivity.

(E) BUDGETING (HIGH OR SMALL):

Keep separate your personal and official expenses , NOTE it that miscellaneous expanses used in business are not personal expanses. You have to categorize them in a  manner as products expenses, overhead, marketing, Legal( registration or consultation of lawyer), Utility bills, transportation and miscellaneous expenses. Just like that you have to manage your income in account to look for income, gross profit, net profit and profit after clearance of all expenses. Budget should be appropriate according to the needs of business, not necessary that high budget groom your business at extraordinary level , Misuse of things loses everything. Just like this minimum budget can suffocate the chance to grow your business. Key of the budgeting is, it should be fit to  1st ,2nd, or continuous attempt or rebuilding of  business and the proportion of finance keeping in itself chance to getting lose.

(F) PLACING BUSINESS ONLINE

This is same as losing and winning in real world, no miracle u see while placing business online. In same way you have to wait for making your identity, client's response and then earn something. Only the difference is of publicity which doesn't meant +ve clientage ,its depend upon good strategies not publicity. As various companies are making them popular but has no +ve feedback, in contrast some trademarks without advertising at large scale has been necessity of market due to excellent quality. If you are getting fast, being popular fast no way your competitions is fast too because you are among billions of online businesses, keep in mind its too hard to survive in this global village but not impossible. Dozens of thing in addition to your normal business requirements you need, such as Data administrator or web master, expensive systems and utilities for your computer like security and eliminative, and person for handling software and hardware. Its take too much cost but the result is good when your business reached to an end user or client directly from your web. well, cannot describe each and everything about web business b/c its a long topic to cover and has advancing day by day.

(G) WORKING PLACE:

There is a great role of working place in your business success and decisions, Work at home is not always peaceful because your family don't know always how much you are scarifying or devoting towards your business so peaceful environment is required. Not compulsory you arrange your office building at high budget but you can make it beautiful by using your tricky ideas following trends or doing some thing unique beautifully. When your clients comes to you they look at this first then you.

(H) Business Pearls:

This is  the secrets that no one is sharing honestly their success story despite that,  one should always stare at the success stories of famous and extra ordinary business persons especially of their market and field, if you have little experience of business handling you may find out what's right and what's wrong in a story.

Your soul idea should be stay secret, not necessary you share each and everything of your plan to your employees this is not fairness towards them but you are weakens your plan.

Do not offer exclusives what you cannot maintain in future because if you have wit to advertise, your clients have wit to buy, mean to say that if you cease your exclusive bonus offers, your sell will be cease automatically because there are lot of competitors wish to replace them with you.

Conjecture doesn't works in this field you are not writing a story or coloring a picture, Be practical to strive your best in a real environment and be realistic finding the background stories of running businesses. While surfing the net u may found business plan for you whish are marketing by many companies claiming for successful business, think thoroughly in that plans your personal interpretations doesn't matter, more, these are written by ordinary plan writers who are not always honest.

Extended reports featuring your business are less effective than a short well written description, you can experiment yourself after reading headings or description of others what is easy to understand.
One should get know how about each and everything about business mentioned above, then ready made plans could help you because you can choose among them solutions using your knowledge.

Unique is the best so work always for unique ideas that distinguish you in market such as unique company name, product name, formulae, presentation, and marketing way + work in purposeful way that not all unique things can maintain their standard after attracting clients, "QUALITY DOES MATTER".

It is better to work at small level initially rather than to wait for when the GODDESS OF WEALTH meet you. Someone earning $1 daily is not equal to Someone spending $1 if they have same life status.

Just keep in mind before you totally impressed with some successful business of the town, country or world leading business that Ups and Downs in these business have manipulation of government in 90% cases or always.

Beware of superstitions but have some doubt so that you will be careful about happenings and people consider you a sensible business person not a 'dummy' playing an officer's role only to grace them with sobriety and expressionless boss. Doing so you can escape from fraud, and loss , but do not this too much. Showing yourself careful and in full senses from the beginning of the business save your staff and property, WHY? ANSWER is so simple the continuity of the habitual careful work prevents the break through which create after some time when you change your behavior with employees so keep a standard and complete (mix) behavior. For example if someone says that he cannot count properly, the employee starts to get benefit of this by misusing and corrupting your accounts 'As your offer'. By doing this may possible you caught him at a glance but you can lose an employee as well as his quality of work not necessary will remains same, you are making him stubborn or guilty feeling by playing this tracking game.

Before hiring someone for you: His character and background counts much more. So collect the data about your co-workers, its too important to keep yourself safe from any hazardous event. You can do this during an interview in detail.

Answers should be ready for inquirers: All genius business persons have the answers to all questions asked by relevant peoples, If they are not answering honestly (about secret strategies) then they are fully satisfying from lingual edges that's clear the all question in mind . So, do write the satisfaction of others in your personal note book, what can be asked to you.

(I) TERMINOLOGIES USED IN BUSINESS:

(TERMINOLOGIES ARE THE COURTESY OF BIZOLOGY.COM)

Accounts Payable- balance sheet entry reflecting amounts owed to creditors (current liability)

Accounts Receivable- balance sheet entry reflecting amounts owed to the business for goods or services (current asset)

AGS- annual gross sales

Allocation- the process of distributing an expense to a number of items or areas

ANP- annual net profit

Assessed Valuation- the taxable value of a property

BLI- business listing information (sheet)

Book Value- value stated on owner's statements or accounting records

Current Ratio- comparison of current assets to current liabilities (assets divided by liabilities)

Cash Flow- profit before income tax, depreciation, interest and owners compensation & benefits

Contingencies- performance is dependent upon successful outcome of named event (verification of tax returns)

Cost of Goods Sold- generally includes amount of goods & labor for service or delivery

Covenant Not to Compete- agreement that the seller will not compete with the buyer for so many years in so many miles

Depreciation- loss in value of a fixed asset due to wear & tear or obsolescence (which cannot be repaired by normal repairs)

Due Diligence- process of evaluating the business for purchase in a set amount of time

E2-Visa- Long term visa issued to a person making a substantial investment in an active enterprise

EBIT- earnings before interest and taxes

EBITA- earnings before interest, taxes and amortization

EBITDA- earnings before interest, taxes, depreciation and amortization

Escrow- held by a third party until all conditions are met

Escrow Account- "non-interest bearing" account that is used for deposits on business purchase,

regulated by the State

FF&E- furniture, fixtures, & equipment

FICA- Federal Insurance Contributions Act

Goodwill- the difference between the total value of the business and the hard assets (FF&E)

Gross Profit- income from sales less cost of goods sold (before overhead, general & administrative expenses)

Guarantee- promise to pay, could be Corporate Guarantee or Personal

Keystone- cost times two (triple key 3X)

Letter of Intent- Non-binding intent to purchase and intent to sell (unless a better offer comes along!)

Majority Owners- owners of a majority of the stocking a corporation

Maker- the person signing or giving a promissory note

Markup- amounted added to cost to arrive at retail (expenses plus desired profit)

MGS- monthly gross sales

Net Profit- difference between total income and total expenses

Non-Disclosure Agreement (Non D)- agreement from buyer that he/she will divulge information about or that the business is for sale, talk to employees, customers, suppliers or anyone not directly involved in sale (lawyer, accountant)

Non recurrent item- income or expense arising from a cause not likely to exist in future years

Partner- one of the owners of an unincorporated business

Pool Margin- average profitability expressed in cents

Proprietary income- may include officer's salary, bonuses, owner's salary, perks and profit of

business

Proprietor- the owner of an unincorporated business

Prorate- to spread equally over a period of time

Recast Financial- owner "perks" are added back to come up with a true "owner benefit"

Replevin- an action whereby the person entitled to repossession of goods may recover from one

that has wrongfully detained such goods or chattels

Residual Value- estimated scrap value of a tangible asset

Retained Earnings- those profits kept in a corporation and not distributed as dividends

SBA- Small Business Administration

Service Business- firm dealing in non merchandising activities

Simple Interest- interest on the principal only as compared to compound interest

Sole Proprietorship- business owned by one person

Taxable Income- gross income minus both exemptions and personal deductions

Turnover- the rate at which an asset is replaced within a given time period

UCC- Uniform Commercial Code

WGS- weekly gross sales

Working Capital- surplus liquid cash used to finance ongoing operations of the business