Business lesson 109 – How to start your own business
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Hi kids!
I cannot believe that is Wednesday again. Time indeed have wings.
I am sure that by now you all know the three “C’s” of a business of heart.
C – Concept ✔
C – Clients or customer ✔
C – Cash flow
Today we start with that last C, that cash flow. Soon you will be able to open your own business
Just to recap on last week;
I shared a business story with you in which I highlighted some sales tips. I am sure as you started to read you thought it was crazy but in the end you will agree with me that there was actually some good sales tips to be learned.
If you haven’t read it the link to the lesson is at the bottom of this post.
Don’t miss out on a valuable lesson!
When I refer to “cash flow” I am referring to the financial planning of your business.
I know, the financial side of anything sounds boring and you might think you can skip this lesson but I can guarantee you to have a financial plan is crucial for any business. PLUS I am convinced you will enjoy to see if your business can make a profit or not.
Why must you do financial planning for your business? |
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- It will help your to reach your financial goals
- It is the framework for the decisions you will be making
- It will help you to track the progress of your business
- It will help you if you need to secure funds for your business
I refer to the financial plan as the roadmap of your business. You cannot travel in an unfamiliar country without a roadmap. The same for a business. You cannot venture into a new business if you do not know where you are going. You have to make financial projections for your business. How else will you know if you are going to be profitable or not.
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I have often seen people taking their living savings and then open a business without looking at the financial side of it. Very soon they discover that they have invested in a business which is not profitable at all.
How must you do your financial planning? |
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There are 5 key components you need to look at when you compile your business plan.
1.Start-up cost
2.Your revenue model
3.Profit and loss statement
4.Balance sheet
5.Cash flow projections
Let’s take a short overview into the meaning of these components.
| The term | The meaning |
|---|---|
Start-up cost | what is need to start the business |
Revenue model | how are you going to generate money for your business |
Profit & loss statement | the projections for the income and expenditure of the business |
Balance sheet | the projections you have or your business at a specific time |
Cash flow | how much cash you will be generating over a period of time |
It sounds complicated doesn’t it? In fact it is not at all.
To start a small business your only need to focus on only 3 of the elements;
1. Your revenue model
2. Start-up cost
3. Profit and lost statement
Microsoft made it so easy for potential business owners by providing a template financial plan that you can download that will assist you.
START-UP COST TEMPLATE
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PROFIT AND LOSS TEMPLATE
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Homework:
What I want you to do for homework is to download the template financial plan and to play around with it. There are clear indications on how to use it.
You will find it super interesting to see what capital you need to set up your business and what you need to “sell” to make it profitable.
Just let me know by replying to this post that you have done it and place a screenshot of your file.
For those who want to create a post, go for it! It will for sure attract the correct eyes! (•ิ‿•ิ)
Good luck and most of all enjoy!
See you all next Wednesday!
Links to our previous lessons
What is the concept or the idea you have for your business? What is your business all about and what makes it unique.
Link to Lesson 101
We took a closer look at your customers or clients, in other words who is your target market, their demographics, budget group etc.
Link to Lesson 102
During this week we took a closer look at marketing and sales strategies.
Link to Lesson 104
I share the marketing strategies we took when we launched our property portal.
Link to Lesson 106
This was our first lesson on sales. What is sales and the strategies.
Link to Lesson 107
I shared a story with some excellent sales tips.
Link to Lesson 108
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Thanks a lot for yet another wonderful tutorial
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@Reminiscence01 Thank you! It is appreciated!
You know, adults needs to participate in this business class...right?...it will make sense.
Seems kids doesnt like business these days due to though times i guess😄, we adult we like business and we like this business class.
Talking about adult, i mean I.
Thanks for another interesting class, maybe we could set exams at the end of the term for kidss and come up with some great rewards...,are you seeing that as a good initiative...?
For sure! It will be those final business plans .
I’m glad that Mr Adult likes my business lessons 😊
I was so proud to notice that you are participating in almost all contests.
Thank you my friend! It's been difficult this month. First we had the move and now we sit with huge power failures which makes it so difficult to be on Steemit.
Our local networks also went down yesterday due to not enough time to power up the batteries.
Have a great day!
Yes, I am aware of the struggles people have when power outages occur.
What a great job my friend. I love learning about business with your lessons. Some very important points you share with us to start our business. Success dear.
Thank you for your support week after week! 🌼
Nice tutorial on how to start up a business. I find this article very interesting and helpful for me. Because of my new plans of establishing a business. Thank you @patjewell. Let me visit other links too.
Pleasure my friend! And.. if you have any questions or if I can be of any help to you, you know where to get me.
I will help with one condition. Every time I help you, you must sign someone up for Steemit.
Sounds like a bargain to me 😊
I will ma, please can I private chat you if I have any questions
Any time! You know where to get hold of me (•ิ‿•ิ
Alright ma, I will. Thanks so much for giving me the privilege.
Hello @patjewell, Your post has been selected as one of the quality posts for the day by steemkids community. Congratulations! Please keep making quality and original contents with us here. We love you so much and will like to read more of your posts.
Please endeavour to resteem, vote and comment on the post of selection. Thank you!
Thank you! ♥️