Small business planning is an essential task for a successful small business but is also one of the tasks that is likely to be overlooked, rushed or not done at all. A well-thought-out business plan can help you to create order out of chaos. No matter who you go to for advice, they will recommend that you put a lot … Read more
Gaining a good understanding of your small business operating expenses is critical. Especially when you are evaluating past performance, making decisions about future activities or developing a business plan. You will need to know what your operating costs are likely to be so that you can calculate Identifying your Business Operating Expenses Your operating expenses will be reported in your Income … Read more
SWOT Analysis is a tool to analyse your business operations to seek growth opportunities and is an important step in evaluating your business model. So what exactly is it? SWOT stands for strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal factors and opportunities and threats are external or environmental. The object of the analysis is first to identify … Read more
Small business budgeting is one of those really valuable business tools that, (like business plans for small businesses,) is often put to one side due to a perceived lack of time or in the too-hard basket! Many small business owners are pushed to their limits just keeping the doors open. Particularly in the first few years of operation. New business … Read more
One of the important sections in a small business plan is the financial plan for the business, particularly during the startup phase. Many larger organisations will continue the business financial planning process by forecasting an annual budget for a period of years (often 3 – 5 years). The financial plan or budget is then used as an operation planning tool … Read more
Getting your small business pricing strategies right is critical to the success of your business venture. The factors that will influence the prices you set for your products or services include: Your Product Costs In most situations, the cost of your products will determine the lower limit of your prices. To accept a price that is lower than the cost … Read more
Calculating your break-even volume is sometimes quite difficult. The formula for calculating the break-even point is as follows: Sales – ([Variable Cost per Unit x Sales Volume] – Fixed Costs) = 0 You are probably able to calculate the fixed and variable costs. But if you are starting, it may be difficult to work out the sales and sales volume … Read more
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