Your reason for stating a business

Some individuals want to start a business because they think they are going to make a lot of money, they think they will work less hours being their own boss (such a fantasy), they have a passion and interest in a particular matter or they are led by a call from the Lord. My business journey was due to the latter and it required me to prepare for the journey that lied ahead of me. Whatever the reasons you may have for starting a business, you must take the necessary steps to ensure that you are prepared for your business to succeed.

Prepare yourself for your new journey

I have shared my journey, of my preparation, to starting my business in my book, Business by Faith. I am a Registered Nurse by trade, but I ultimately established a business in healthcare education. When your business focus is different from your daily occupation, you must be willing to prepare yourself for the new journey you are going to embark on. The first thing I did was to enroll into a university to obtain a full time teaching credential. I did not know how to develop a curriculum, write a lesson plan, develop test or write a syllabus. These were the necessary skills I needed to best prepare me for operating a successful business in healthcare education. I wanted to know how to develop the tools needed to teach various subjects. I also want to be able to assess the quality of program development and class preparations that faculty and staff would be responsible for. I needed basic knowledge in financial management so I could communicate with the accounting manager on financial matters. I also sought out mentors for their business knowledge, support and wisdom. My mentors encouraged me to obtain my MBA and strive for higher goals.

Because of my preparation, receiving guidance and encouragement and my sheer will to press through every challenge, the ultimate reward I received was being in business for 23 years and being a part of the business’s success.

Prepare yourself to succeed

Don’t hesitant and don’t procrastinate. Don’t blocked your path to establishing a business because of fear and lack of preparation. Be willing to prepare yourself for the new role in your life. When you learn the intricate details of running a business and you integrate solid business principles, you will become empowered as you infuse your knowledge and engage in your business’s growth.

Prepare yourself to succeed.

Linda

Business Prepwork

Before you start a business, you should do your homework and prepare yourself for business success. The more prepared you are, the more likely you will be successful in reaching your business goals. Prepare yourself by becoming educated in the realm of business knowledge.

Educate Yourself

Every person desiring to establish a business should take basic classes to enhance their business’ operations. As a business owner you become the leader of your company and your company’s success or failure will greatly depend upon your preparation as a business owner. Not every owner knows how to track the finances of the company. Not every business owner knows the nuances of human resources and payroll. So, the best outcome for success is knowledge.

Every business owner should take a basic class in Finances 101. If finances is your expertise, then of course, you would not need to take a class, but be willing to evaluate your areas of weakness and obtaining knowledge to aid your company in being better prepared to succeed. When I knew that I was going to establish a business that involved the education of others, it was imperative that I take a course in curriculum development. I actually earned my Teaching Credential which enabled me to become an intricate part of the development of various training programs, provide in-services to faculty and evaluate the various programs outcomes in student’s performances.

Lack of Knowledge Can Lead to Disaster

The lack of knowledge and inadequate preparation can result in poor business decisions, loss of contracts, limited business growth and possible failure of your business. A true example of this is once upon a time, a young contractor placed a bid for a job with a local city. His bid was not presented in a professional manner, the sketches lacked detail,  the budget was not itemized, and omitted key categories to evaluate his full cost to fulfill the obligations of the city contract.  Although, he could use a hammer and nail, he lacked the basic knowledge to provide schematic drawings and a detail budget.  Of course, his bid was disqualified and he learned a valuable lesson in being prepared to increase his chances for being selected and more qualified to succeed.

Being an entrepreneur is not an easy road to travel, but the more knowledge you have on basic business operations, the better the chances are you will have for business success.

What steps did you take to ensure you understood business basics? Please share your story in the comment box below.

Linda

Managing Your Business’s Money

It takes more than money to effectively maintain the daily operations of any business. The flow of cash, which is how money comes into your company, must be deposited into a business checking or operating account to help you to manage your business’ ability to maintain its operations. Every business has some level of income and every business has some level of liability. If a business that does not have enough money deposited into its business operating account, then the business will operate at a deficit.

I have counseled individuals who have started businesses and I have highly recommended that they monitor on what they are spending the company’s funds. I have found that some individuals will spend the income of their business recklessly and cause their business to suffer.  As a new startup company, it is extremely important that a business owner spend the company’s revenue on items that are necessary and not on unnecessary personal use. Often time business owners of new startup companies apply monies to purchase new items rather than obtain used items. There are times that the new entrepreneur will placed emphasis on image of items rather than the necessity for items to establish the business. One may buy office furniture to establish an image and fancy decor rather than being thrifty and seeking out suitable used items to furnish a business that is a new start up. I want to emphasize to the new entrepreneur to be wise with the business’s income and to be thrifty on purchasing items and furnishings for their new business.

New and Shiney vs Wise and Thrifty

Years ago I met a young man who felt he had to have the latest gadgets in communicating with others. He had a beeper (yes, this was a long time ago) and a message pager that had just come out. He felt he just had to have this message pager and he paid quite a bit for it. He purchased a new printer and a copier. I tried to share with him the importance of buying only the necessities to start a new business and I gave him this example. My first copier only cost twenty five dollars because I shopped at discount stores and I sought out businesses that were going out of business. I tried to encourage him to also look at hospitals because hospitals keep a significant amount of used items in storage units. In fact, I was able to furnish my first business after establishing a positive relationship with a hospital contact. I was able to get office furniture; chairs, tables, refrigerators, pictures, lamps, all from this one facility. It is extremely possible to furnish your business, as a new startup, without spending thousands of dollars. Be wise and thrifty!

Line of Credit

When you are starting a business the first five years can be the most challenging financially, and I want to emphasize to you that there are some key items that you should do to prepare to obtain a Line of Credit. The Line of Credit can be used to cover cash flow shortfalls and will support the business to continue to operations effectively.

1. Maintain excellent personal credit.
2. Maintain excellent business credit.
3. Develop a Business Plan.
4. Make sure you have a bookkeeping or accounting system in place to track your receivables and expenses.
5. Obtain a CPA to do an annual financial audit on the company’s financial records.

Brew Your Own Coffee

Lending institutions will evaluate the length of time you have been in business, the business credit history, your personal credit history, and the audited financial statements in order to determine if you and your company are credit worthy to be trusted with any financial support from the lending institution. So be wise and make sure you purchase only what is necessary for your startup business, do not spend excessive funds on personal use (a $4 latte five days/week will cost you $960/year).  Add the $960 to your company’s bottom line and make your coffee at home. Be wise and thrifty, it will pay off in the long run.

Are you wise and thrifty? Share with us how you’ve saved money on business startup expenses.

For Executive Business Coaching contact Linda L. Smith at (951)442-2403. Visit my website at www.lindalsmith.com

Amazon Bestselling author, “Business by Faith”

What is in your heart to do?

Excerpts from Business by Faith

“I was called by God. I expect people to think I was crazy. How many are going to quit their job and go home and say, “Okay Lord, what do I do next?” and wait on the Lord?

I have always prayed for what I wanted to do in my quest to serve others. I sought my specific role in life, my purpose. We are all made wonderfully different with desires, attitudes and abilities. I sought out what I would be best at. What is in your heart to do? I knew my limitations in skills. I am not athletic nor artistic. I have sung in choirs, but I know my vocals lack quality. I often have thought about how I could make a difference in someone’s life, using my skills as a nurse and have a foundation here I could stand and say, “Through God all things are possible.” I came to understand through my journey that I was not to look at my perceived limitations to perform an unknown task, but it was my faith in God that would propel me to implement, perform and succeed. “I prayed for my faith not to waiver one inch as I stayed focused on the plans and purpose He had called me to.”

What is it that you are asking God for?

Don’t worry about how crazy you think your request is. Don’t worry about what others will think about you or state how crazy your desires are. When you pray for what you desire and seek, you will receive. God will orchestrate your steps, open doors and place you where you need to be to make your desires come to fruition.

But, if you do not implement the Four D’s To Success you may not move forward with the plans God has for you. A builder may have the blueprints to build a house, but unless he gathers the tools and equipment to build what is on the blueprints, then he or she will only have a drawing of what could be.

What are your blueprints that need to be built?

This is what our lives are like. We each have blueprints from God to do exceeding, abundantly great things. But, each of us must be willing to put our faith into action. What are your blueprints that need to be built? Do you believe in yourself, even when others doubt you, criticize you and try to discourage you? You must not let anyone else’s self-doubt in themselves become your blanket of uncertainty.

Power of belief

I pray and hope that each of you will have the power of belief and know that the power that works in all of us is faith. “Faith is truly the power of belief.” You will have trials and challenges as you pursue the development of the blueprints of your life. If you have the DESIRE to achieve, are DETERMINED to follow through the process, have DRIVE that energy level needed to be consistent, then you will DELIVER in reaching your goals for success.

I want to encourage you to believe. Believe in yourself and have faith in God. I have had a remarkable journey in the past 24 years as I pursued my desires to make a difference in someone else’s life. I desire that you will put your foot forward and press against the odds. Do what you are called to do for as long as you are to do it. Know that when one path ends a new one begins. Have faith, because faith is truly the power of belief.

What is in your heart to do? What are your blueprints to develop? Now that you know what you are to do, get busy and get the job done! Please share your comments and questions in the comment box below. I would love to hear about your blueprints.

Linda

You can purchase “Business by Faith” on Amazon.

Follow Your Dreams and Implement the Four D’s of Success

How often have you had the burning desire to do something that seemed impossible? So impossible that others thought you were crazy? You have wanted to step out on a limb but hesitated because the voices of others reminded you of the impossibility of your potential success.

The Fear of Others

The 4 D’s of Success