Smart Business - Tips

Get smart before you start or invest in a business.  Have at least a basic understanding of business management, marketing, advertising, sales, law, accounting and finance.  Knowledge is power and applied knowledge is powerful.

Always research your business opportunity before making any large financial investments.

Know exactly what you are doing and why you are doing it before you take action.  Do not operate on guesswork or blindly trust or count on others to represent your best legal and financial interests.

Never sign any documents without legal review first.  When signing contracts always write "subject to attorney's approval" right above your signature, then sign the document. In this way, the contract will not be binding on you if your attorney does not approve the contract or deal.

You can form a mastermind group by giving away stock or interest in your business in exchange for the professional services of an attorney and/or accountant.  Always try and keep 51% of the controlling interest in a business. Pack your board of directors in this way and do so on a performance agreement--they perform over time, they get stock.

Either you will control chaos or chaos will control you.  Always "think systems" for your business operations and develop them while your business is young or just starting.  Think ahead, create standard operating procedures (SOP's) for each function of your business.  By doing so, you will organize business activity into written SOP's which can be followed by people you hire to do things the way you want.  This is how franchises work, by documented systems.

Always prepare a formal type written business plan for any new business idea.  In this way, you will gain a clear perspective of your business and be ready to raise investment capital if you so choose.

Always perform thorough research supporting all elements of your business plan, emphasis The Market.

Your first goal of a new business is to perform a successful market test to prove sales. By doing so, you are more likely to succeed and save money in the long run.  Successful test results can be used to raise capital with your business plan.

Do not over estimate sales and under estimate costs, a common mistake of entrepreneurs.  A good rule of thumb is that costs will be at least 50% of sales revenue.