Why Make a Business Plan?

In many cases business plans are very important but so much of the time it’s a plan to try to convince someone else that you know what you are doing with your business like banks, investors, partners, etc. Now it’s true that a well written business plan can also be a major benefit to your success as well if done right. It can guide you and keep you on track and can be the vehicle to get you were you want to be especially with so many outside forces now days that bombard you. A plan can be extremely important to your success especially when you look at the statistics that says 51% of small businesses fail sometime during their first 5 years.

So why make a business plan? I want to show you a totally different kind of business plan. What if you made a business plan that focused only on what you want for your life? You have dreams about what you would like your lifestyle to be, right? Why not make a business plan that could give you those dreams? What would your business look like if it gave you exactly what you want in life. What kind of salary would your business need to give you? Why not build a business plan around that? Decide how much salary you would need to support your dreams and then build a business plan that would show exactly how your business could give you that. Wouldn’t it be better to have your business work for you instead of the other way around?

Did you ever stop and think what a unique position you’re in as a business owner? I don’t know of any other way you can have as much control over your success than owning a business. When you work for someone else, you are totally at their mercy as to what your future may be like. It doesn’t matter whether it is a private business you work for or a large corporation. Your future is in their hands. The only thing that might qualify other than owning a business would be to inherit or win a lot of money that would give you everything you want in life.

So, why make a business plan the normal way when you could first make one that could give you what you want in life? Have you ever thought about doing a plan like that? Would you know how? Would you have the time to do it?

Well if you don’t or not sure, let’s at least see what’s involved.

Here are the steps you would need to take.

First, you would need to know all your current business numbers. This will be the basis for the plan. You’re going to need to know:

1. What your current average monthly sales are
2. What your current average monthly material cost is
3. What your current average monthly labor cost is
4. What your current average monthly fixed expenses are
5. What your current average monthly variable expenses are
6. What your average number of transactions per customer per month are
7. What your average dollar sale per transaction is
8. What your average monthly profit is
9. What your average monthly profit margin is
10. And what % capacity your business is at right now

Second, decide what you want your salary to be

Third, determine how many years in the future you want to plan for

Fourth, you will need to know:

1. What % is your material cost of sales?
2. What % is your labor cost of sales?
3. And what % is your variable expense of sales?

Why do you need to know these percentages? As your sales increases or decreases, your material cost, labor cost, and variable expenses will track accordingly. They will track very close to the same % as your current business. As an example, let’s say your current sales is averaging $100,000 per month and your material cost is averaging $20,000 per month. That’s 20% of your sales ($20,000 ÷ $100,000 = 20%). So, what would your material cost be if your sales were averaging $200,000 per month? It would still be 20% but it would be 20% of $200,000 or $40,000. So with these percentages, you can project your material, labor and variable expenses. See how it works?

But your fixed expenses don’t do this. They remain the same no matter what sales does. That’s why it’s call fixed. These are expenses like rent, taxes, utilities, phone, salaries, insurance, etc. A lot of business owners never consider this. They just lump all their expenses together. But you could never make an accurate plan if you combine all your expenses together. If you project your sales higher and want to know what your expenses will be, you have to separate your fixed and variable.

So, thinking about this principle, let me ask you a question. If your sales grew 10% and nothing else changed, would your profit margin be higher, the same, or less? Profit margin is % of profit against sales

If you said the profit margin would be higher, then you are right. Why would your profit be higher? If you said because of the fixed expenses, you would be right. Your material cost, labor cost, and variable expenses would have gone up 10% but your fixed expenses would have remained the same. You brought in more revenue because of more sales and you spent 10 % more on material, labor, and variable expense to cover the extra sales, but you didn’t spend any more on your fixed expenses. So, less overall expenses, would give you higher profit margin. Make sense?

So, let’s see how we would make a business plan that would show exactly how your business could give you the salary you want.

First you would determine what you would like your salary to be. You’ve dreamed about having a nice income to support your dreams I’m sure. Let’s say right now you only make what your profit is giving you which might not be much. So let’s say the first year, next year, you would love to have a consistent monthly salary of $4,000 a month, every month. And every year you would like to be able to increase it so that after 10 years it would be at $10,000 per month. And let’s say you would like to grow your business 10% each year.

So, what would your business look like over the next 10 years to give you that?

Could you build a plan that would show exactly how your business could do that?

It would show what your sales, fixed expenses, material cost, labor cost, and variable expenses would need to be. It should also show you how many customers you would need and would show you what your profit and profit margins would be each year.

All it takes is your current business numbers as we listed earlier and you can make a business plan as many years out as you like.

Now, in addition, when you know the average number of transactions per customer and you know your average dollar sale per transaction, you can also project how many customers you would need over those 10 years as well. This would tell you everything about what your business would need to do to give you the salary you want.

So, wouldn’t it be nice to see what a plan like this would look like? Could you do it? It might not be as tough as you might think.

There is no doubt it would take some time and would require a lot of calculations, but when you understand these principles and know how to put it together, you could probably do it. What do you think? Have you ever thought about doing a plan like this? It’s actually kind of in reverse. You decide what you want and let your business give you that.

Now assuming you did do this and it looked reasonable to you, how would you go about making it happen? What approach would you use? This could be a little harder. Well let me show you something. It might be easier than you think.

Did you know there are 7 ways to increase profit in business? If we decided to grow our business, most likely the first thing we would think about would be to add more customers. Adding customers will increase sales and as we seen above can increase profit as well, but it might not be the most effective way to increase profit. Take a look at these and see which ones you think could work for you. Would it be to:

1. Add more customers?
2. Increase your transactions per customer?
3. Increase your average dollar sale per transaction?
4. Decrease your fixed expenses?
5. Decrease your variable expenses?
6. Decrease your material cost?
7. Or decrease your labor cost?

What’s more important, sales or profit? Profit is what generates your salary. You could actually make more profit with less sales. Less sales could actually be less work. The most important thing for a business is to make money. That’s profit. Now some might say, I don’t care so much about making a lot of money. I like the freedom of owning a business. Well that is probably true, but if you don’t watch your profit, you might lose that freedom.

It’s always amazed me how most businesses, even very large ones, talk about how much their sales are. You hear comments like, that’s a $10,000,000 company. But what’s a $10,000,000 company if it has no profit. Now I do admit that 2% net profit of $10,000,000 is a lot bigger than 2% of $1,000,000 but most likely the large one carries a lot more headaches too.

Maybe it would be much better to have focused on profit than sales. What if profit had been the focus instead of sales. What if this could have been the result?

$10,000,000 x 2% = $200,000 profit
$1,000,000 x 25% = $250,000 profit

So when using one or more of these 7 ways to increase profit, the first one (adding more customers) might be the one you want to focus on last. It’s probably more expensive

Now, if you had your plan completed and it showed what your business needed to do over the next 10 years to give you the salary and profit you wanted, the next thought would be how do I make it happen. Well the best way would be to take it one year at a time. Concentrate on next year first and then choose one or more of 2 through 7 to work on before trying to add customers.

As an example, let’s say your current average number of transactions per month per customer is 3.0. Which says on average each customer does business with you 3 times each month. You could calculate how much more profit you would get if you could increase it to 3.5. And I can tell you that would probably be enough to meet your plan. And if that did generate enough profit, all you would have to do is maintain everything else; sales, expenses, labor, average dollar sale, etc, and then just figure out how you could increase your transactions from 3.0 to 3.5. Maybe it could be with some type of promotion that would get customers to come in more often.

Once you chose which one or more of the 7 you want to use and calculate exactly how much impact they have on meeting your plan, you would now have a definite approach on how to make your plan work.

It seems simple. At that’s what it’s all about. It’s about how to make your plan work the easiest and smartest way you can eliminating all the guesswork or trial and error methods. Want to increase your profit? This is a good way to do it.

So, you see, once you decide which of the 7 ways you’re going to do, then the only thing left for you to do is figure out how to make the one or ones you have chosen work.

No doubt there would be a lot work to do to do a plan like this. You would need to figure out how to put it all together, do all the calculations, do a lot of what if’s, etc.. And I’m sure one of the biggest things would be, would you actually take the time to do something like this or even have the time to do it? You could pay someone to do it but that would probably cost you a lot. Plus if you did that, most likely it would require a lot of back and forth work to get it just like you wanted it which would be even more expensive. But even then, would you spend the money to do it?

There is a better way. If you would like to develop a nice plan like this for yourself and give yourself a good shot at making your life better, then find a planning software that does it all for you.

One place and probably the only place I’ve found is http://StrategicBusinessSolutionsLLC.com.

This is a Small Business Planning Tool made just for small business owners. All you do is enter your business numbers along with the few other things and everything else is done for you automatically including the 7 ways to make it happen. If you wanted to see what 3.5 transactions would do to your profit, the second you enter 3.5, it shows you immediately what your new profit would be and whether it would meet your plan or not. I doubt you have ever seen anything like it before.

I spent 39 years in the corporate and business world in many different capacities, mostly in various management positions, retiring as Director of Manufacturing a few years ago. I have done so many budgets and plans during my business life that it just became a way of life. After retiring, I worked with small business owners for a couple of years. I think small business owners should have ever advantage they can get to become as successful as they want to be. But, I watch daily the burden our Government place on small business owners. All the red tape, regulations, paper work, etc. they have to put up with. Yet, I also look at how many jobs small business owners provide for our country and it makes me scratch my head as to why the government don’t get it. If anyone deserves to be successful, it’s the small business owner in my view. No one works any harder than a small business owner. No one takes more risk than a small business owner. That’s exactly why I developed this tool. I want you to have it so I’ve made it as easy as I can for you to have it. Please check it out.

Posted in Uncategorized | Comments Off on Why Make a Business Plan?

Buy Tulsi Herbs Online And Marvell At Its Beneficial Excellence

Basil or Ocimum Basilicum is a culinary herb that belongs to the Lamiaceae family. It is also known as the ‘royal herb’. Basil or Tulsi, as it is popularly known, forms a natural remedy for a variety of skin and hair related problems. Though, majorly unexplored, buy tulsi herbs online as tulsi for hair and skin can actually work wonders. Basil has been known worldwide for its medicinal values and forms an important ingredient of Ayurvedic sciences and herbal medicines and treatment since the ancient times to be precise. The tulsi leaf powder comes with innumerable benefits to its credit which makes it an all-in-one natural powder that works as a beauty enhancer as well as a solution to a host of hair and skin related ailments.

Tulsi powder makes for this 100% Natural Powder that provides for an effective remedy against several hair and skin issues. It makes for this multipurpose, micro-fine powder that can be used both for your hair, skin, and face due to its organic and nutritional properties. Basil is not without benefits in case of hair and skin treatments rather it forms an important part of hair and skin care and herbal treatment skin packs and hair masks. as Tulsi has an important medicinal value for our health in general. It actually works wonders in terms of our health, skin, and hair.

Wondering about the different benefits of the Tulsi leaf powder? Buy tulsi herbs online as it can add to the health of the hairs and skin while catering to an array of additional benefits in terms of hair and skin care:

Hair Care:

•Functions As A Natural Remedy For Scalp Infections:Tulsi is known for its anti-bacterial and anti-inflammatory properties, this is the main reason why as a natural remedy basil is prescribed majorly for the treatment of scalp related infections and allergies. It, therefore, helps protect the scalp from germs and keeps it free from the accumulation of dirt. In addition, it is highly recommended to people suffering from the flakiness of the scalp. The dryness, the itchiness is reduced with the help of Basil. Helps nourish dry scalp by moisturizing it.

•Provides For The Required Nutrition And Nourishment: Tulsi supplies the natural ingredients for the proper nourishment of the hair which helps in circulating the necessary nutrients to the hair follicles that prevents hair breakage and reduces brittleness to a great measure. This combats hair loss in an effective manner. Tulsi leaves work wonders for the hair, as it is extremely helpful in tackling the problem of hair loss. Can be effectively put to use for undernourished hair as well and helps vitalize the hairs in an effective manner.

•Treats Dandruff Naturally: Tulsi is the natural remedy for the treatment of dandruff in an effective manner. A few drops of basil oil needs to be mixed with coconut oil and with the proper application on the scalp is to be left overnight. The next day when washed with a mild shampoo, it reduces dandruff, frees the scalp from itching and irritations which gets you instant relief from the same.

•Cure For Dry Scalp: Basil oil for the hair helps in reducing dryness of the scalp and is an effective natural product that frees the scalp from impurities and dead cell accumulations.

•Combats Pre-Mature Greying: It is an herb that has anti-aging properties which helps prevent premature greying of the hair.

Skin Care:

•Combats Skin Damage: The tulsi leaf powder helps fight cell damage in an absolutely herbal manner. In this case, the damage refers to that the skin incurs on an everyday basis which includes free radicals like pollution, other damaging substances and Ultraviolet rays of the sun and this gets prevented with the use of this amazing natural powder.

•Functions As The Best Pimple Cure: With its medicinal properties and owing to its anti-inflammatory qualities, the tulsi powder functions as the natural cure for pimples, acne and other breakouts. In the endeavor, this completely natural leaf powder helps prevent skin inflammations to be precise.

•Delays Skin Ageing: The tulsi leaf powder also helps to delay the process of skin aging by doing away with the first signs of aging like fine lines, spots, and wrinkles.

•Helps Reduce Pigmentations: This excellent powder help to reduce pigmentations and dark spots, scars, blemishes and in addition shall invest the skin with a natural youth boost with that perfect dose of radiance.

Directions For Use:

Buy tulsi herbs online which can be combined in an array of different ways with other natural extracts like herbs, plant extracts, and other essential oils as per individual preferences and needs in the different hair and skin care masks.

Hair care:

Tulsi Leaf Powder Hair Mask For Combating Hair Fall:

•Take about 2 tablespoons of Tulsi leaf powder and mix it with lukewarm water till you get a smooth paste.

•Apply this hair pack on your hair and scalp in an even manner. Remember to apply it throughout the length of the hairs.

•Leave it for at least an hour.

•Rinse it off with a mild shampoo and warm water.

•For best results, opt for this hair mask twice a week to do away with hair loss in an effective way.

Tulsi Leaf Powder And Coconut Oil Massage For Stimulating Hair Growth:

•Take about 2 tablespoons of completely natural Tulsi leaf powder and mix it with coconut oil till you get a combination oil. If possible heat this oil for some time and let it cool down. Make sure to apply it when it is warm enough for the application.

•Apply this combination of hair oil on your hair and scalp with the help of a gentle massage. Remember to follow one particular direction for application as it helps stimulate hair growth faster.

•Leave it for at least an hour.

•Rinse it off with a mild shampoo and water.

•For best results, opt for this combination hair oil massage twice a week for it helps stimulate hair growth within a quick span.

Tulsi Leaf Powder And Amla Powder Hair Pack For Combating Premature Greying:

•Take about 2 tablespoons of organic Tulsi leaf powder and 2 tablespoons of Amla powder and mix it with a substantial amount of water till you get a smooth paste.

•Apply this hair pack on your hair and scalp in an even manner. Remember to apply it throughout the length of the hairs.

•Leave it for at least an hour.

•Rinse it off thoroughly with a mild shampoo and water.

•For best results, opt for this hair mask twice a week to combat the premature greying of the tresses in the most effective manner.

Skin Care:

Tulsi Leaf Powder And Egg White Anti-Ageing Face Pack:

•Take 2 tablespoons of tulsi leaf powder and mix it with an egg white till you get a creamy liquid.

•Apply it smoothly and evenly on the face and adjoining neck area.

•Let it dry for at least 20-30 minutes.

•Wash it off thoroughly with water and pat dry your skin.

•Repeat this process twice a week to do away with the first signs of aging for this add a natural youth boost to the skin in an effective way.

Tulsi Leaf Powder And Orange Peel Powder Anti-Marks Face Pack:

•Take 2 tablespoons of Tulsi leaf powder and 1 tablespoon of Orange peel powder and mix it with some water till you get a semi-thick paste.

•Apply it smoothly and evenly on the face and the neck area.

•Leave it to dry for some time at least for 30-40 minutes.

•Wash your face thoroughly with fresh water and pat dry your skin.

•Repeat this twice a week to get clearer complexion and to remove any kind of spots, marks, and blemishes in an absolutely herbal way.

Tulsi Leaf Powder And Sandalwood Powder Anti-Inflammation Skin Pack:

•Take 2 tablespoons of tulsi leaf powder and 1 tablespoon of Sandalwood powder and mix it with some water till you get a semi-thick paste.

•Apply it smoothly and evenly on the skin.

•Leave it to dry for some time at least for 15-20 minutes.

•Wash your face thoroughly with fresh water and pat dry your skin.

•Repeat this twice a week for it helps to do away with skin inflammations while soothing the skin and also adds an instant glow to the skin.

Tulsi Leaf Powder And Milk Whitening Skin Pack:

•Take 2 tablespoons of the organic Tulsi leaf powder and mix it with some milk till you get a thick paste.

•Apply it smoothly and evenly on the face or skin as per requirement.

•Let it dry for some time at least for 20 minutes.

•Wash your face thoroughly with normal water and pat dry your skin.

•Repeat this twice to thrice a week for skin whitening purposes.

Posted in Uncategorized | Comments Off on Buy Tulsi Herbs Online And Marvell At Its Beneficial Excellence