5 Tips on Exit Strategies

1.

Plan your exit when you start the business. Will you sell your company, pass it on to children, or take it public?
2.

Take time to understand how your chosen exit affects business planning. Will family members need to be trained to replace you, for example?
3.

Consider the cost of each strategy—loss of the ability to keep financial information private if you sell or go public, for example.
4.

Be aware that your investors will have their own exit strategies. Be prepared to discuss their desired timetable for exiting your business, how they see it happening and their expected return on investment.
5.

Plan well ahead for a satisfying life when you leave your current business. Consider starting another business, teaching, volunteering—or becoming a philanthropist.

5 Tips on Building a Sound Business Plan

1.

Write a business plan with a complete financial and marketing plan.
2.

Your marketing strategy should be built around your strengths, your competitor's weaknesses and your customers' desires.
3.

Test the reality of your business—know why it will work and how you will make it work. Think your business through step by step.
4.

Allow at least two hours every week for thinking and planning. Do not allow anything to interfere with this time. You run the business. Don't let it run you.
5.

Establish an annual operating plan. Review it and update it monthly with appropriate employees.

5 Tips on Budgeting

1.

Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress.
2.

Start by coming up with a sales revenue target. Make it your best estimate.
3.

Based on past experience, estimate your cost of goods sold (e.g., 70 percent of sales) and subtract it from the sales revenue to come up with your estimated gross margin.
4.

Forecast variable expenses (items such as travel and commissions that vary according to the level of sales) and fixed expenses (items like taxes and rent that stay the same, regardless of sales). Subtract these expenses from your gross margin to arrive at your estimated net income (before federal taxes).
5.

Break your annual budget into quarters and monitor your progress every three months to detect problems and make corrections.


source: www.source.org

5 Tips for Using Colleges and Universities to Help Your Business

1.

Volunteer your company to be a business school case study. You’ll learn much about your company in the process and get good ideas for the future.
2.

Obtain management and technical assistance from one of more than 50 Small Business Development Centers. Check the U.S. Small Business Administration web site at www.sba.gov for locations.
3.

Participate in special programs. Many colleges and universities sponsor venture capital forums, entrepreneurship centers and family business programs.
4.

Work with the business school to offer internships to graduate students.
5.

Find out what expertise is on a business school’s staff. You may find just the right person to hire as a consultant or serve on your board.



surce: www.score.org

5 Tips for Developing Policies for Your Business

1.

Think ahead. Establish policies before you need them. Doing so helps avert crises and awkward situations, and helps solve problems before they arise.
2.

Determine what policies you need. Some you’ll want early in your business include a mission statement, as well as compensation, performance evaluation and employee policies.
3.

Get input from key employees, as well as from members of your advisory board, your board of directors, and/or your professional advisors and consultants.
4.

Communicate policies to everyone in your business.
5.

Review policies on a regular basis—once a year, for example—and revise them as necessary.

source:www.score.org