QUESTION.
I'm a medical doctor and I have some cash I want to invest. I have a close friend who is a successful small business owner. He knows his business pretty well, and he would like to open another store in a distant county from where we live. He wants me to finance the new store. I have heard his idea, but he has not written a business plan documenting the soundness of the idea. Should I require him to prepare a business plan before I agree to finance the project? Please advise.
ANSWER.
Yes. You should require him to prepare a business plan. You can help him prepare the plan if you like. Two heads are usually better than one when it comes to putting together a business plan. The key thing to keep in mind is studying the existing market where your new business will be started. Study the competition. I can't say this enough. You want to know who their customers are. You want to know how they market their businesses so customers buy from them. And you want to know what their gross revenues are.
After you have answers to the above, you should be able to figure out what the gross revenues of your market are in total. You strategy will be to grab a certain percentage of the market. Your business plan will explain why you can grab that percentage and how you will be able to grab that percentage. If you do a good job explaining those two things, then the finished plan will be your roadmap to grabbing that percentage of the market and in the process becoming a business.
Without a sound business plan in place you would be putting up capital to start the business with little security. Successful entrepreneurs are masters at miminizing risk in the things they do. And having your friend prepare a business plan will go a long way to helping you minimize risk.
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Wednesday, April 25, 2007
Tuesday, April 17, 2007
Positive cash flow is something every business needs to strive to attain. Usually startups don't have it, and neither do failing companies.
QUESTION.
A couple of weeks ago I attended a face-to-face meeting with two SCORE volunteers in my home town. I signed up for the meeting because I wanted to get a few things staight about issues I was having in preparing my business plan. I was very pleased with what I learned. One topic that I did not grasp all that well was "Cash Flow." We must have spent 15 minutes on the topic, but I still don't really get it. What can you tell me about it.
ANSWER.
Yes, cash flow is an important topic when preparing your financials for a business plan. A business needs cash to survive. It needs cash to pay its payroll and to pay other bills. Sometimes the problem with cash flow is the business is giving out credit to its customers when it shouldn't or can't afford to do so. Other times the problem with cash flow is no revenues are coming in.
Cash flow means customers pay cash for goods or services they buy from a business. The business in turn has to use that cash to pay its bills and buy more goods or pay more payroll so services can be provided in the future. Then customers can buy more from the business the next day, next week, or next month. What goes around comes around. Cash comes in and then goes out. It's this motion of cash that is called cash flow.
Often a business owner will use a spreadsheet program like Excel with revenue and expense items listed along the left side of the spread sheet and days of the month listed across the top side of the spreadsheet. Revenues are entered as positive numbers and expenses are listed as negative numbers. The columns are each added up and the sum at the end of the day should be a positive number. And that positive number is moved to the top of the next day's column on and on.
If a column adds up to a negative number, then that signifies a negative cash flow. And that is not good. Strategic planning is necessary to avoid a negative summation happening in the future. As a result, cash flow is something that must be monitored at all times. It is a very important business concept to understand. I recommend you Google the term "cash flow" and read as much as you can about it. It will be time well spent for you.
I think I have answered your question. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/
A couple of weeks ago I attended a face-to-face meeting with two SCORE volunteers in my home town. I signed up for the meeting because I wanted to get a few things staight about issues I was having in preparing my business plan. I was very pleased with what I learned. One topic that I did not grasp all that well was "Cash Flow." We must have spent 15 minutes on the topic, but I still don't really get it. What can you tell me about it.
ANSWER.
Yes, cash flow is an important topic when preparing your financials for a business plan. A business needs cash to survive. It needs cash to pay its payroll and to pay other bills. Sometimes the problem with cash flow is the business is giving out credit to its customers when it shouldn't or can't afford to do so. Other times the problem with cash flow is no revenues are coming in.
Cash flow means customers pay cash for goods or services they buy from a business. The business in turn has to use that cash to pay its bills and buy more goods or pay more payroll so services can be provided in the future. Then customers can buy more from the business the next day, next week, or next month. What goes around comes around. Cash comes in and then goes out. It's this motion of cash that is called cash flow.
Often a business owner will use a spreadsheet program like Excel with revenue and expense items listed along the left side of the spread sheet and days of the month listed across the top side of the spreadsheet. Revenues are entered as positive numbers and expenses are listed as negative numbers. The columns are each added up and the sum at the end of the day should be a positive number. And that positive number is moved to the top of the next day's column on and on.
If a column adds up to a negative number, then that signifies a negative cash flow. And that is not good. Strategic planning is necessary to avoid a negative summation happening in the future. As a result, cash flow is something that must be monitored at all times. It is a very important business concept to understand. I recommend you Google the term "cash flow" and read as much as you can about it. It will be time well spent for you.
I think I have answered your question. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/
Monday, April 16, 2007
Accounting can be very complicated. But the basics are pretty easy to comprehend.
QUESTION.
I've heard of the following formula as it relates to accounting:
ASSETS = LIABILITIES + NET WORTH
Can you explain this formula to me? I'm trying to learn a little about accounting before I start a small business this summer.
ANSWER.
Assets are things you own. For example a computer, a car, a bank account, or goodwill (like a customer base). Liabilities are things you owe. For example, a debt, an IOU, a loan, or an unpaid judgment. And net worth (or equity) is the difference between the two. For example, you have $1000 in the bank, own an $800 computer, and you owe $500 on the computer. In this case you have a net worth of $1800 minus $500 equalling $1300.
You may get a little more information on this subject by visiting the following link. See LEARN ABOUT ACCOUNTING, BOOKKEEPING AND QUICKBOOKS.
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I've heard of the following formula as it relates to accounting:
ASSETS = LIABILITIES + NET WORTH
Can you explain this formula to me? I'm trying to learn a little about accounting before I start a small business this summer.
ANSWER.
Assets are things you own. For example a computer, a car, a bank account, or goodwill (like a customer base). Liabilities are things you owe. For example, a debt, an IOU, a loan, or an unpaid judgment. And net worth (or equity) is the difference between the two. For example, you have $1000 in the bank, own an $800 computer, and you owe $500 on the computer. In this case you have a net worth of $1800 minus $500 equalling $1300.
You may get a little more information on this subject by visiting the following link. See LEARN ABOUT ACCOUNTING, BOOKKEEPING AND QUICKBOOKS.
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Sunday, April 15, 2007
If you want to start a CPA firm, then you'd better get expert at self-promotion. Rainmaking is where it is at!
QUESTION.
I'm in the process of putting together a business plan for a solo practice CPA firm. I'm not too expert on how to go about marketing it. Can you give me some things to think about?
ANSWER.
Sure. There are probably seven topics I could discuss in answering your question. They are:
1. advertising
2. public relations
3. publicity
4. online marketing
5. customer service
6. self promotion
7. networking
Search my GUIDES and BOOKLISTS for some books on these topics. It is very important that you become expert on these topics before you start your new firm. Make sure you can design and build a great Web site. Also, consider joining a Toastmasters club and getting active in it. It will help you develop leadership skills and become a good public speaker.
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I'm in the process of putting together a business plan for a solo practice CPA firm. I'm not too expert on how to go about marketing it. Can you give me some things to think about?
ANSWER.
Sure. There are probably seven topics I could discuss in answering your question. They are:
1. advertising
2. public relations
3. publicity
4. online marketing
5. customer service
6. self promotion
7. networking
Search my GUIDES and BOOKLISTS for some books on these topics. It is very important that you become expert on these topics before you start your new firm. Make sure you can design and build a great Web site. Also, consider joining a Toastmasters club and getting active in it. It will help you develop leadership skills and become a good public speaker.
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Self-promotion techniques include writing articles, blogging, writing books, public speaking, and delivering seminars and workshops.
QUESTION.
What are some things I can do to self promote me and my small business? I offer services.
ANSWER.
Self-promotion techniques include writing articles, blogging, writing books, public speaking, and delivering seminars and workshops. Join the local professional associations to gain credibility and the local chamber of commerce to network with peers and potential clients. Definitely build yourself a content-rich Web site that will convert visitors into paying clients. Consider getting the following three books to learn more. See
Promote Your Business
By: Mary Morel
(c) 2004 ISBN: 1865089311
Talk Up Your Business
By: Mary Morel
(c) 2006 ISBN: 174114423X
The Web-Savvy Writer
By: Pat Rutledge
(C) 2006 ISBN: 0977830403
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
What are some things I can do to self promote me and my small business? I offer services.
ANSWER.
Self-promotion techniques include writing articles, blogging, writing books, public speaking, and delivering seminars and workshops. Join the local professional associations to gain credibility and the local chamber of commerce to network with peers and potential clients. Definitely build yourself a content-rich Web site that will convert visitors into paying clients. Consider getting the following three books to learn more. See
Promote Your Business
By: Mary Morel
(c) 2004 ISBN: 1865089311
Talk Up Your Business
By: Mary Morel
(c) 2006 ISBN: 174114423X
The Web-Savvy Writer
By: Pat Rutledge
(C) 2006 ISBN: 0977830403
I hope my comments are helpful to you. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
When self promoting yourself and your small business there is a fine line between bragging and promoting. Be careful!
QUESTION.
I'm learning how to get better at self promotion. I have to since I'm now self-employed and have to be the rainmaker for may small professional services firm. I'm afraid I'm coming off as a braggart in many instances. Do you know of a good book I can get that will help me with the problem?
ANSWER.
That's interesting that you should ask me that question. I just reviewed the book I think you need. See
Brag!: The Art of Tooting Your Own Horn without Blowing It
By: Peggy Klaus
(c) 2004
ISBN: 0446692786
Make sure you read the numerous book reviews for it, too. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I'm learning how to get better at self promotion. I have to since I'm now self-employed and have to be the rainmaker for may small professional services firm. I'm afraid I'm coming off as a braggart in many instances. Do you know of a good book I can get that will help me with the problem?
ANSWER.
That's interesting that you should ask me that question. I just reviewed the book I think you need. See
Brag!: The Art of Tooting Your Own Horn without Blowing It
By: Peggy Klaus
(c) 2004
ISBN: 0446692786
Make sure you read the numerous book reviews for it, too. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Friday, April 13, 2007
Third-year law student is thinking ahead. What should she do after she gets out of school so she can start her own profitable law practice?
QUESTION.
I am about ready to graduate from law school at the end of the Spring semester. I have good grades, but I didn't get on law review. I expect to get two job offers in the next couple of weeks for employment to start in the Fall. I plan to take two bar exams together. I am wondering if you think it is wise that I accept one of the job offers, or should I try to start my own law practice right out of school? Any advice you can provide would be helpful. Thanks.
ANSWER.
If you plan to practice law, then I highly recommend you take one of those two jobs you expect to be offered. They will give you some experience regarding the practice of law, and help you understand what it is really like to practice law. Hopefully the job offer you pick will provide you some exposure to the professional associations, the local chamber of commerce, and other attorneys who you can examine as role models or at least someone to use as a benchmark of good versus bad.
While you are practicing you should be documenting what the practice of law is like that you are experiencing. Make sure to analyze whether the practice in which you are involved uses a business model that is profitable. If it does, then great. If it doesn't, then you will have a little work ahead of you when you use your notes to create a business plan for the law firm you want to start on your own.
It is critical that you figure out a business model for your law practice that you can enjoy and that is profitable. Not many attorneys do this! But not many attorneys are really happy with the way they earn a living. That's why so many are getting out of the profession.
I recommend you join a Toastmasters club (www.toastmasters.org) to get some experience doing public speaking. Also, try to help manage the club in order to get leadership skills. To market your law practice you almost definitely will have to do seminars and workshops. Public speaking skills will be necessary to do that. You should expect to write articles for the Net, too.
I suggest that you contact your local SCORE chapter when you decide to sit down and write your business plan. SCORE volunteers excel at helping SCORE clients prepare great business plans. Our meetings are free and confidential, so you have nothing to lose by contacting us and setting up a face-to-face session or sessions to prod you along in writing your business plan.
You definitely need a business plan that is sound and can act as a roadmap or cheatsheet for you to follow in running you practice so it is profitable.
I've given you some things to think about. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I am about ready to graduate from law school at the end of the Spring semester. I have good grades, but I didn't get on law review. I expect to get two job offers in the next couple of weeks for employment to start in the Fall. I plan to take two bar exams together. I am wondering if you think it is wise that I accept one of the job offers, or should I try to start my own law practice right out of school? Any advice you can provide would be helpful. Thanks.
ANSWER.
If you plan to practice law, then I highly recommend you take one of those two jobs you expect to be offered. They will give you some experience regarding the practice of law, and help you understand what it is really like to practice law. Hopefully the job offer you pick will provide you some exposure to the professional associations, the local chamber of commerce, and other attorneys who you can examine as role models or at least someone to use as a benchmark of good versus bad.
While you are practicing you should be documenting what the practice of law is like that you are experiencing. Make sure to analyze whether the practice in which you are involved uses a business model that is profitable. If it does, then great. If it doesn't, then you will have a little work ahead of you when you use your notes to create a business plan for the law firm you want to start on your own.
It is critical that you figure out a business model for your law practice that you can enjoy and that is profitable. Not many attorneys do this! But not many attorneys are really happy with the way they earn a living. That's why so many are getting out of the profession.
I recommend you join a Toastmasters club (www.toastmasters.org) to get some experience doing public speaking. Also, try to help manage the club in order to get leadership skills. To market your law practice you almost definitely will have to do seminars and workshops. Public speaking skills will be necessary to do that. You should expect to write articles for the Net, too.
I suggest that you contact your local SCORE chapter when you decide to sit down and write your business plan. SCORE volunteers excel at helping SCORE clients prepare great business plans. Our meetings are free and confidential, so you have nothing to lose by contacting us and setting up a face-to-face session or sessions to prod you along in writing your business plan.
You definitely need a business plan that is sound and can act as a roadmap or cheatsheet for you to follow in running you practice so it is profitable.
I've given you some things to think about. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Wednesday, April 11, 2007
When starting a small part-time business it's ok to start slow, but don't fade fast!
QUESTION.
I want to start a part-time business selling small antiques. I'd like to have it be a home-based business and possibly sell exclusively online. How do you suggest I get started doing this?
ANSWER.
I think the first thing you should do is try to sell a few things on eBay. Sell some things out of your garage that you no longer want, but that you think you can move. Sign up at eBay and study the eBay system of selling. After you sell 5 or 10 items you will get a feel for how to use the site to your advantage. You may also figure out how to find some inventory at eBay that are not being marketed well? In any event, after you are comfortable selling, then get started selling the stuff you want to sell.
If you see it going somewhere profitably, then consider stepping back and writing a business plan for your venture. Have SCORE help you with the business plan if you like. That's how we help our clients the most.
Consider taking a look at the following links. See
USING EBAY IN YOUR SMALL BUSINESS
WRITE A BUSINESS PLAN
BOOKS ON RETAILING
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I want to start a part-time business selling small antiques. I'd like to have it be a home-based business and possibly sell exclusively online. How do you suggest I get started doing this?
ANSWER.
I think the first thing you should do is try to sell a few things on eBay. Sell some things out of your garage that you no longer want, but that you think you can move. Sign up at eBay and study the eBay system of selling. After you sell 5 or 10 items you will get a feel for how to use the site to your advantage. You may also figure out how to find some inventory at eBay that are not being marketed well? In any event, after you are comfortable selling, then get started selling the stuff you want to sell.
If you see it going somewhere profitably, then consider stepping back and writing a business plan for your venture. Have SCORE help you with the business plan if you like. That's how we help our clients the most.
Consider taking a look at the following links. See
USING EBAY IN YOUR SMALL BUSINESS
WRITE A BUSINESS PLAN
BOOKS ON RETAILING
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Tuesday, April 10, 2007
What comes first? The Web site? Or the business plan and marketing plan?
QUESTION.
I have an idea for a business. I'm chomping at the bit to build a Web site for it. I haven't written the business plan yet. Should I wait to create the Web site until after I complete the business plan?
ANSWER.
Yes. A Web site is a marketing tool. And it will only be effective if it works for your small business in a way that your business' marketing plan dictates. Without writing your business plan (and marketing plan) first, you will have no way of building your Web site so it is in line and consistent with your marketing plan. Besides, you will probably cut and paste most of your Web site's content from your written business plan and marketing plan.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I have an idea for a business. I'm chomping at the bit to build a Web site for it. I haven't written the business plan yet. Should I wait to create the Web site until after I complete the business plan?
ANSWER.
Yes. A Web site is a marketing tool. And it will only be effective if it works for your small business in a way that your business' marketing plan dictates. Without writing your business plan (and marketing plan) first, you will have no way of building your Web site so it is in line and consistent with your marketing plan. Besides, you will probably cut and paste most of your Web site's content from your written business plan and marketing plan.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Monday, April 9, 2007
Entrepreneur has an eBook and now isn't sure how to market it online. Should have had a business plan for the book before she wrote it.
QUESTION.
I am writing an ebook that will have a specific target audience. The ebook itself is the easy part. What I need is direction and suggestions on how best to create a web presence, market and sell my ebook.
ANSWER.
Oh, so you want to be an inforpreneur. Consider taking a look at the following link. See LEARN ABOUT WHAT IT TAKES TO BE AN INFOPRENEUR.
The techniques used to Sell an ebook or ebooks on the Web are very similar to those used to promote a Web site or to promote yourself online. Consider taking a look at the following link. See SOME BOOKS ON SELF PROMOTION.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I am writing an ebook that will have a specific target audience. The ebook itself is the easy part. What I need is direction and suggestions on how best to create a web presence, market and sell my ebook.
ANSWER.
Oh, so you want to be an inforpreneur. Consider taking a look at the following link. See LEARN ABOUT WHAT IT TAKES TO BE AN INFOPRENEUR.
The techniques used to Sell an ebook or ebooks on the Web are very similar to those used to promote a Web site or to promote yourself online. Consider taking a look at the following link. See SOME BOOKS ON SELF PROMOTION.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Sunday, April 8, 2007
When designing your small business' Web site don't create hyperlinks to exteral Web pages without forcing the browser to open a new browser window.
QUESTION.
I am in the process of building a Web site for my small business. I am getting pretty good creating hyperlinks between the pages and to external sites. I don't want my site's visitors to leave my site and get lost so they cannot return to my site easily. Is there a general way to help my site's visitors stay anchored to my site?
ANSWER.
Yes. When you create hyperlinks on your Web pages that go to pages on some other Web site, then add the following HTML code to your hyperlinks:
target="_blank"
By including the above code in your links a new browser window will open up. The visitor to your site will not leave your site since the browser window with your Web site will continue to house your site. When the visitor is done visiting the site you recommended, then he or she will have to close the browser window and return to your site.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I am in the process of building a Web site for my small business. I am getting pretty good creating hyperlinks between the pages and to external sites. I don't want my site's visitors to leave my site and get lost so they cannot return to my site easily. Is there a general way to help my site's visitors stay anchored to my site?
ANSWER.
Yes. When you create hyperlinks on your Web pages that go to pages on some other Web site, then add the following HTML code to your hyperlinks:
target="_blank"
By including the above code in your links a new browser window will open up. The visitor to your site will not leave your site since the browser window with your Web site will continue to house your site. When the visitor is done visiting the site you recommended, then he or she will have to close the browser window and return to your site.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Saturday, April 7, 2007
Wanta-be entrepreneur wants to buy an online business. What's he to do?
QUESTION.
I want to buy an online business. What do I need to do to buy one?
ANSWER.
I assume you want to run the business you buy. I suggest you you surf the Net for online businesses that you would like to buy. Visit those sites and get knowledgeable about them. Then contact the owners and see if they are willing to sell. They probably won't be willing to sell, but you can ask them if they know of any of their competitors who might want to sell. Eventually you will be able to find an online business to purchase.
Things to consider when you approach business owners to buy their business is how well the business is doing. It's generally a good idea to buy a business that is being run poorly so you can fix what is wrong and make considerable profits on a minimal investment. If the business is already being run very well, then you will pay a premium dollar for it.
Buying a business is kind of like buying a house. If you buy a house that is in great shape, then you will pay a lot for it. If the house is in extreme disrepair, then you can get it for a song. But you will have to fix it up for it to be lived in or sold for a nice profit.
You can also seek out business brokers that specialize in helping online business owners sell their ecommerce sites. I don't have a list of such brokers to give you. But you can find their names online using Google.
You will want to do some "due diligence" before you actually make an offer to buy a business. Google the term "due diligence" to learn more about what it involves.
I hope my comments have been helpful to you. Good luck! Regards, -Jeff
Jeff Lippncott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I want to buy an online business. What do I need to do to buy one?
ANSWER.
I assume you want to run the business you buy. I suggest you you surf the Net for online businesses that you would like to buy. Visit those sites and get knowledgeable about them. Then contact the owners and see if they are willing to sell. They probably won't be willing to sell, but you can ask them if they know of any of their competitors who might want to sell. Eventually you will be able to find an online business to purchase.
Things to consider when you approach business owners to buy their business is how well the business is doing. It's generally a good idea to buy a business that is being run poorly so you can fix what is wrong and make considerable profits on a minimal investment. If the business is already being run very well, then you will pay a premium dollar for it.
Buying a business is kind of like buying a house. If you buy a house that is in great shape, then you will pay a lot for it. If the house is in extreme disrepair, then you can get it for a song. But you will have to fix it up for it to be lived in or sold for a nice profit.
You can also seek out business brokers that specialize in helping online business owners sell their ecommerce sites. I don't have a list of such brokers to give you. But you can find their names online using Google.
You will want to do some "due diligence" before you actually make an offer to buy a business. Google the term "due diligence" to learn more about what it involves.
I hope my comments have been helpful to you. Good luck! Regards, -Jeff
Jeff Lippncott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Part-time entrepreneur wants to sell his T-shirts online. He should start by using eBay, and then create his own Web site.
QUESTION.
I own and operate a part-time business designing and selling T-shirts. I currently sell them through independent stores on consignment, but that’s going slow. The bigger stores won’t consider stocking my shirts. I've looked into selling them as a street vendor in my city, but that looked like it would be a big hassle. Some of my friends suggest that I consider selling my shirts over the Internet. Should I create my own retail Web site? Should I sell my shirts on eBay? Or both?
ANSWER.
I think your first step in going online is to learn how to sell items on eBay. Start selling things out of your garage. It takes a little study and practice to be good a moving product on eBay. Take a look at Chris Spencer's book for starters. See The eBay Entrepreneur. Then take a look at the following list and see if there is a book or two you might consider studying. See USING EBAY IN YOUR SMALL BUSINESS.
After you get good at selling product on eBay, then start selling your T-Shirts on eBay in order to make a profit. You'll probably need to prepare a business plan once the business starts to take off. And if you get successful selling on eBay, then you will probably want to start diverting sales from your eBay customers to an ecommerce site you'll create. That way you won't have to share as much of your profits with eBay as you did when you start doing all this.
But it is best to start selling on eBay first. I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I own and operate a part-time business designing and selling T-shirts. I currently sell them through independent stores on consignment, but that’s going slow. The bigger stores won’t consider stocking my shirts. I've looked into selling them as a street vendor in my city, but that looked like it would be a big hassle. Some of my friends suggest that I consider selling my shirts over the Internet. Should I create my own retail Web site? Should I sell my shirts on eBay? Or both?
ANSWER.
I think your first step in going online is to learn how to sell items on eBay. Start selling things out of your garage. It takes a little study and practice to be good a moving product on eBay. Take a look at Chris Spencer's book for starters. See The eBay Entrepreneur. Then take a look at the following list and see if there is a book or two you might consider studying. See USING EBAY IN YOUR SMALL BUSINESS.
After you get good at selling product on eBay, then start selling your T-Shirts on eBay in order to make a profit. You'll probably need to prepare a business plan once the business starts to take off. And if you get successful selling on eBay, then you will probably want to start diverting sales from your eBay customers to an ecommerce site you'll create. That way you won't have to share as much of your profits with eBay as you did when you start doing all this.
But it is best to start selling on eBay first. I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Small business owner want to get into ecommerce. She needs a Web site with a shopping cart and will accept credit cards.
QUESTION.
I've operated a small business for 5 years. I'm a wholesale distributor/mfg. I'd like to once and for all get a Web site going and be able to accept credit card payments. But I don't want to use PayPal. I'm pretty computer illiterate which makes this whole endeavor difficult for me. Can you help me identify a good (reasonably priced) hosting service for my site? And can you provide some pointers to getting a merchant account for credit card payments? Thanks in advance for any help you can offer.
ANSWER.
I have experimented with a number of hosting services over the years. I started playing with Web pages and creating Web sites back in 1998. I started with the great number of free hosting services out there. Most are gone now since they couldn't make a profit. The one that continues to give away free space as a loss lead into providing fee-based Web site hosting services that I still use today is 50megs.com. Visit it at http://www.50megs.com/ and examine its different offerings. I have been VERY pleased with its service level. And I have not know my site(s) to be down EVER.
Paypal is not bad when it comes to enabling credit card payments over the Net. However, if you have been in business for 5 years, then you should have a good relationship with a bank or two. Banks offer the merchant accounts for credit cards. Price the offerings at your current bank or banks and then shop around at other banks you would be willing to use for your business' banking needs. The one that gives you the best deal for credit card acceptances may not be the bank you currently use for you banking. So switch to the a new bank and get your merchant account there.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/
I've operated a small business for 5 years. I'm a wholesale distributor/mfg. I'd like to once and for all get a Web site going and be able to accept credit card payments. But I don't want to use PayPal. I'm pretty computer illiterate which makes this whole endeavor difficult for me. Can you help me identify a good (reasonably priced) hosting service for my site? And can you provide some pointers to getting a merchant account for credit card payments? Thanks in advance for any help you can offer.
ANSWER.
I have experimented with a number of hosting services over the years. I started playing with Web pages and creating Web sites back in 1998. I started with the great number of free hosting services out there. Most are gone now since they couldn't make a profit. The one that continues to give away free space as a loss lead into providing fee-based Web site hosting services that I still use today is 50megs.com. Visit it at http://www.50megs.com/ and examine its different offerings. I have been VERY pleased with its service level. And I have not know my site(s) to be down EVER.
Paypal is not bad when it comes to enabling credit card payments over the Net. However, if you have been in business for 5 years, then you should have a good relationship with a bank or two. Banks offer the merchant accounts for credit cards. Price the offerings at your current bank or banks and then shop around at other banks you would be willing to use for your business' banking needs. The one that gives you the best deal for credit card acceptances may not be the bank you currently use for you banking. So switch to the a new bank and get your merchant account there.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/
Wednesday, April 4, 2007
At some point your business will need a Web site. Often it is helpful to get some help creating it.
QUESTION.
I created an event Web site. I just spent the last 3 weeks looking for a designer and couldn't find one. In the meantime I started creating it myself. Still needs help.
ANSWER.
Consider taking a look at the following booklist for help. See WEB PAGE AND WEB SITE DESIGN.
If you are a service business, then take a look at THE WEB-SAVVY WRITER.
If you are a retail business, then take a look at STARTING A BUSINESS ONLINE.
Of course, surf the Net and find sites that you think are wonderful and consider using parts of the ones you like.
I've given you a few things to think about. I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/
I created an event Web site. I just spent the last 3 weeks looking for a designer and couldn't find one. In the meantime I started creating it myself. Still needs help.
ANSWER.
Consider taking a look at the following booklist for help. See WEB PAGE AND WEB SITE DESIGN.
If you are a service business, then take a look at THE WEB-SAVVY WRITER.
If you are a retail business, then take a look at STARTING A BUSINESS ONLINE.
Of course, surf the Net and find sites that you think are wonderful and consider using parts of the ones you like.
I've given you a few things to think about. I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
http://www.jlippin.com/
Tuesday, April 3, 2007
Small business owner is changing landlords and wants to know if he has to provide his tax return to qualify as a tenant.
QUESTION.
I own a small software business with two employees. I am currently trying to rent an office space with about 1,000 sq. ft. The landlord wants me to give him my company's tax return and provide a security deposit. I am wondering if I should give him my company's tax return. Also, what is a reasonable security deposit? Lastly, is it fine to give him a six-months security deposit instead of giving him my company's tax return? As you can see, I am hesitant to give him my company's tax return.
ANSWER.
The landlord is a business person. He wants to be sure that he is renting to a tenant that can make the rent payments on a regular basis. You would do the same thing if you were in his shoes. About the only thing I would be hesitant giving the landlord that may be on the tax return would be my social security number, but most landlords want that number so they can do a credit check on you. Are you a corporation so you will have a separate tax return for your business? And a separate EIN for your tax return? Or are a sole proprietorship or LLC and thus your tax return is your personal return? The bottom line is that I recommend you provide your tax return but redact (white out) your nonbusiness information if it discloses a lot about you that is irrelevant to your business.
I recommend that you pay as little in security deposition as possible. The less you put up will mean the more you have for working capital in your business. Also, if you go belly up you will have less at risk assuming the landlord doesn't sue you for unpaid future rent.
I could go on and on regarding this subject. I think I have answered your question. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
I own a small software business with two employees. I am currently trying to rent an office space with about 1,000 sq. ft. The landlord wants me to give him my company's tax return and provide a security deposit. I am wondering if I should give him my company's tax return. Also, what is a reasonable security deposit? Lastly, is it fine to give him a six-months security deposit instead of giving him my company's tax return? As you can see, I am hesitant to give him my company's tax return.
ANSWER.
The landlord is a business person. He wants to be sure that he is renting to a tenant that can make the rent payments on a regular basis. You would do the same thing if you were in his shoes. About the only thing I would be hesitant giving the landlord that may be on the tax return would be my social security number, but most landlords want that number so they can do a credit check on you. Are you a corporation so you will have a separate tax return for your business? And a separate EIN for your tax return? Or are a sole proprietorship or LLC and thus your tax return is your personal return? The bottom line is that I recommend you provide your tax return but redact (white out) your nonbusiness information if it discloses a lot about you that is irrelevant to your business.
I recommend that you pay as little in security deposition as possible. The less you put up will mean the more you have for working capital in your business. Also, if you go belly up you will have less at risk assuming the landlord doesn't sue you for unpaid future rent.
I could go on and on regarding this subject. I think I have answered your question. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
Monday, April 2, 2007
Government grants for startups are few and far between. Think in terms of getting your startup funds from some other source.
QUESTION.
I am going to start a non-profit Christian-based communication company that will produce a Christian youth magazine. I will have to start this business from my home right now but wanted to know if there is any gov't funding that I can apply for?
ANSWER.
The government is not providing much in the form of startup capital for either for-profits or nonprofits. So the answer to your question is - no.
You may be interested in the following link? See BECOME A FOUNDER OF A NONPROFIT.
There may be some other links of interest to you about half-way down the following link? See
www.jlippin.com/listmania.html
Sorry I couldn't be more help. Feel free to send me follow-on questions via email. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
http://www.scoreprinceton.org/
http://www.jlippin.com/
I am going to start a non-profit Christian-based communication company that will produce a Christian youth magazine. I will have to start this business from my home right now but wanted to know if there is any gov't funding that I can apply for?
ANSWER.
The government is not providing much in the form of startup capital for either for-profits or nonprofits. So the answer to your question is - no.
You may be interested in the following link? See BECOME A FOUNDER OF A NONPROFIT.
There may be some other links of interest to you about half-way down the following link? See
www.jlippin.com/listmania.html
Sorry I couldn't be more help. Feel free to send me follow-on questions via email. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
http://www.scoreprinceton.org/
http://www.jlippin.com/
Sunday, April 1, 2007
Entrepreneurs want to form their own limited liability company. Best place to start on that project is at the bookstore.
QUESTION.
My friend and I are starting an espresso catering service in our town. I downloaded the Limited Liability form #205 from the Texas Secretary of State office and am having trouble figuring out what exactly needs to go in some of the blanks. We don't want to submit it and have it rejected, so we want to do it right the first time. Would this be something you could help us with? And if not could you point us in the right direction? Thank you so much.
ANSWER.
As a SCORE counselor I am limited to providing business coaching services. When legal services are needed I recommend the client seek out an attorney to help them with legal matters. Helping you fill out the LLC form for Texas would be the practice of law.
The form should not be all that difficult to fill out. If you are having trouble, then visit www.nolo.com to find a book on how to form an LLC. My memory tells me that there are two or three books on the subject that Nolo sells.
Forming an LLC is not necessarily all that easy. The single-member ones are VERY easy since there is only one person involved. However, the multi-member LLCs are a bit more tricky because they are basically partnerships. When you form a partnership a smart person will draft a detailed partnership agreement that covers such topics as buyouts, death of a partner, etc. An LLC has a similar document called an operations agreement or operating agreement. You would be foolish to form a multi-member LLC without a good operating agreement. What happens when you and your friend don't like being partners? How will one of you get your money back? What about management issues?
Search online for samples of operating agreements. If you can't find a few, then look for sample partnership agreements, too. The topic should be covered in the book or books you get from Nolo. You can also visit your county courthouse and visit its law library that should be open to the public for free. Ask the law librarian where the form books for LLC issues is kept. Study the form book and you will be using the same book a local attorney would be using.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
My friend and I are starting an espresso catering service in our town. I downloaded the Limited Liability form #205 from the Texas Secretary of State office and am having trouble figuring out what exactly needs to go in some of the blanks. We don't want to submit it and have it rejected, so we want to do it right the first time. Would this be something you could help us with? And if not could you point us in the right direction? Thank you so much.
ANSWER.
As a SCORE counselor I am limited to providing business coaching services. When legal services are needed I recommend the client seek out an attorney to help them with legal matters. Helping you fill out the LLC form for Texas would be the practice of law.
The form should not be all that difficult to fill out. If you are having trouble, then visit www.nolo.com to find a book on how to form an LLC. My memory tells me that there are two or three books on the subject that Nolo sells.
Forming an LLC is not necessarily all that easy. The single-member ones are VERY easy since there is only one person involved. However, the multi-member LLCs are a bit more tricky because they are basically partnerships. When you form a partnership a smart person will draft a detailed partnership agreement that covers such topics as buyouts, death of a partner, etc. An LLC has a similar document called an operations agreement or operating agreement. You would be foolish to form a multi-member LLC without a good operating agreement. What happens when you and your friend don't like being partners? How will one of you get your money back? What about management issues?
Search online for samples of operating agreements. If you can't find a few, then look for sample partnership agreements, too. The topic should be covered in the book or books you get from Nolo. You can also visit your county courthouse and visit its law library that should be open to the public for free. Ask the law librarian where the form books for LLC issues is kept. Study the form book and you will be using the same book a local attorney would be using.
I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com
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