7 Stress Saving Strategies for Beating the Small Business Cash 1

Small business owners can relieve a lot of their own cash flow problems, according to Caroline Jordan, small business advisor and author. “Small business owners have more control over their cash flow than they realize.” says Jordan.

To help you get a jumpstart on solving your own cash flow woes, Jordan offers a free, “Cash Flow Master checklist” that you can get by sending a blank email to [email protected] Jordan also suggests the following tips to help you understand why cash flow problems plague 66% of small businesses.

1. Avoid the dreaded “Fly by the Seat of Your Pants” accounting method.–Businesses need to systematically track income, expenses, accounts receivable, and accounts payable. If you only know how your business is doing once a year at tax time, you’re bound to end up deeply mired in the Cash Flow Swamp.

2. Developing “Strength in Numbers”–Once you have your accounting system in place you need to learn what the numbers are telling you and how to use those numbers to manage and grow your business.

3. Keep tight control of credit–Business owners can get themselves in credit trouble two different ways; poor credit granting practices and shortsighted use of credit from banks, credit cards, and vendors.

4. Be sure your Receivables and Payables “play nice” together–The money owed to you by your customers should arrive in time for you to pay your vendors and your employees. When your customers take 60 days to pay and your vendors want to be paid in 30 days, you can quickly end up with a Cash Flow Crunch.

5. Make decisions based on Cash Flow not Profit–Many businesses that fail are profitable when the doors close. What those businesses don’t have is CASH. When you pursue that big, juicy contract or think about hiring another employee, always ask yourself “What will this do to my cash flow?”

6. Don’t forget your debt to society– Some bills are easy to forget. Bills like sales tax, payroll taxes, and estimated taxes. Ignoring them doesn’t make them go away. Planning ahead makes the bite easier to take and keeps your from suffering Tax Day sticker shock. Scrambling to find money for taxes causes major cash flow problems.

7. Don’t spend your company’s future on a speed boat–Everybody loves toys. Don’t make the mistake of thinking all the profits of your business are “fun money”. You’ve heard it many times from personal financial planners that you should have enough cash put aside for six months of expenses. This is true for your business, too. Sales ebb and flow. Expenses rise. Customers leave. Vehicles break down. Computers fry. The number one rule of small business is “Stuff Happens”. Having a reserve of cash keeps your cash flow from tanking every time a new challenge appears.

Advantages of General Partnership

Advantages of General Partnership – A partnership is a business where two or more people, companies, or groups get together and form a team that together conducts business. Two well-known partnerships in business started when (1) William Hewlett and David Packard got together to design a test instrument in a garage, and (2) Bill Gates and Paul Allen cobbled together the MS-DOS operating system, which later morphed into today’s Microsoft Windows. Both of these partnerships later became huge corporations, but they started when two people had a good idea and worked together to turn it into a profitable business. A partnership can be very small (two people) or huge (like McKinsey & Company, a global management consulting firm of nearly 900 partners worldwide). In a partnership, all partners share in the profits and losses, usually at a rate commensurate with their initial investment (or tenure) in the business. One can imagine that in the case of Hewlett-Packard, both Mr. Hewlett and Mr. Packard were equal partners, so they each owned 50 percent of the business. Partnership shares can be determined through a number of different formulas: the amount of money (start-up or investment capital) one puts in, “sweat equity” or hours of hard work, the implicit value of an idea or specific technology contributed, some other type of tangible asset (like a house or garage) contributed to the business, or access to a market (such as an Indonesian company that knows how to sell products to Indonesian customers).

Advantages of General Partnership

Advantages of General Partnership

In partnerships the partners can be equal or unequal. One partner could be a general partner, who has the most at risk if the business loses a lawsuit against it and is forced to pay a penalty. Usually the general partner runs the business and has the most knowledge about the business. Other partners in this case would be limited partners, who would lose only the amount of money or other assets they contributed to the partnership. There are also silent partners who do not have anything to do with the operation of the business but share in the profits and losses.

The benefit of a partnership is that it engenders a team spirit working toward a common goal, a certain degree of collegiality, and a sense of “first among equals” that can foster a sense of pride to belong to an elite group. There are a couple of downsides to a partnership. First, a partnership depends on the mutuality of purpose; that is, if one partner loses interest or is not perceived to be contributing the effort it originally committed to, the relationship sours. In these cases, the partnership is often much more difficult to unwind than in a corporate-type of entity because it is usually the unique contributions of the partners that make the business successful. And second, like a sole proprietorship, the partners are personally liable for any transgressions or mistakes that the partnership makes in conducting business. Thus the partners could end up losing considerably more of their personal assets than they contributed to starting and growing the business.

Other partnerships are formed between two companies. These are often called joint ventures. You’ll see these partnerships between a large company with established technology and another company or person who has something that the company needs (technology or market access or both). One example is when the 3M Corporation (maker of Post-It® Notes among other things) wanted to break into a new market, such as Indonesia. The company didn’t know how to sell its products to Indonesians. So it formed a joint venture with a local Indonesian company that knew the market. Another example is Corning Glass, which has formed partnerships with Dow Chemical (Dow-Corning, maker of silicones), Owens-Illinois (Owens-Corning, maker of fiberglass, roofing material, and insulation), and Samsung (Samsung Corning Precision Glass, maker of specialty glass substrates used in thin film transistor LCDs).

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Helpful Hints For Getting An Online Business Started

** Set specific goals, we all are in this to make money. How much money do you want to make by a certain date … for example

** Set a reasonable time frame to accomplish your goal.

** Getting organized I use 3×5″ index cards and an alpha filing system to know where I have been and notes such as:

*Name of Business Opportunity, Tool, etc.

*My ID number and Password for site if applicable *URL of my new affiliate website or the website I want to check out later

*If it is a trial membership when it ends

*Any fees associated

*If it is a Business Opportunity I write on the back of the card any tools or special features. Initially I was putting everything in Favorites or Book marking it then when I went to organize I forgot what was so special about the 15 sites there. *** I was on the phone with one of my down line members and Gordon said ‘wait a minute I’ll find it’ when I popped in with the answer. He asked how I found it so fast to which I replied ‘my little index cards’. You see Gordon had his own system he had been using for some time. Don’t know if he has changed to index cards or not. (I kinda think he has).

** I purchased extra paper and an extra black ink cartridge for my printer. You will need to print out pages with information for future reference if you sign up for anything – even if it is fr.ee. To Print only in black … go to “Start” – “Settings” “Printer” then to the “Properties” “Advanced” area of your printer and have it print in “Grayscale” (no color only black ink is used). This will save you money. I also print in “draft” quality. ** I save those pages that are the last page printed and have little or nothing on them so I can scribble on them. You will find that when you are reading some information an email address or url reference is made to something you want to check out later, well “scribble it down” or use an index card.

** “Don’t start trying to read how to succeed just start succeeding”. Remember not to get the cart before the horse … If you expect to make a living with your computer make sure that you know all about your computer. ** Get an email address used strickly for bsiness Set up a folder for your business(es), one for Ads/Leads – Training – Newsletters. You will want to keep some of the info you sign up for future references or to use right now. If you like an article in an Ezine or email save it and use it as a foundation for your own Ezine or emails.

Things To Understand If You’re A Newbie ~ ** This is a numbers game! When you advertise on a fr.ee site with thousands of other, stats say that 2-3% will will click your business opportunity url. Lots Of Ads.

** Other interesting Stats: * Working part time 10-20 hours per week * For 3 – 5 years * Before you might reach financial independence ****** Let us Make Some Money Now *****

** YOU NEED A WEB SITE! Now wait a minute – that does not mean you need to build your own website right away. (It is best to have your own but not necessary to get started). Lots of Business Opportunities and Affiliate Programs have “self replicating web sites” that you get with the program. Find One you Like and Get Movin’. .

You do need to start someplace. So Go Place An Ad or two …

The Importance of Budgeting in Business

The Importance of Budgeting in Business – A budget is defined as the formal expression of plans, goals, and objectives of management that covers all aspects of operations for a designated time period. The budget is a tool providing targets and direction. Budgets provide control over the immediate environment, help to master the financial aspects of the job and department, and solve problems before they occur. Budgets focus on the importance of evaluating alternative actions before decisions actually are implemented.

A budget is a financial plan to control future operations and results. It is expressed in numbers, such as dollars, units, pounds, hours, manpower, and so on. It is needed to operate effectively and efficiently. Budgeting, when used effectively, is a technique resulting in systematic, productive management. Budgeting facilitates control and communication and also provides motivation to employees.

The Importance of Budgeting in Business

The Importance of Budgeting in Business

Budgeting allocates funds to achieve desired outcomes. A budget may span any period of time. It may be short term (one year or less, which is usually the case), intermediate term (two to three years), or long term (three years or more). Short-term budgets provide greater detail and specifics. Intermediate budgets examine the projects the company currently is undertaking and start the programs necessary to achieve long-term objectives. long-term plans are very broad and may be translated into short-term plans. The budget period varies according to its objectives, use, and the dependability of the data used to prepare it. The budget period is contingent on business risk, sales and operating stability, production methods, and length of the processing cycle.

There is a definite relationship between long-range planning and short-term business plans. The ability to meet near-term budget goals will move the business in the direction of accomplishing long-term objectives. Budgeting is done for the company as a whole, as well as for its component segments including divisions, departments, products, projects, services, manpower, and geographic areas.

Budgets aid decision making, measurement, and coordination of the efforts of the various groups within the entity. Budgets highlight the interaction of each business segment to the whole organization. For example, budgets are prepared for units within a department, such as product lines; for the department itself; for the division, which consists of a number of departments; and for the company.

Master (comprehensive) budgeting is a complete expression of the planning operations of the company for a specific period. It is involved with both manufacturing and nonmanufacturing activities. Budgets should set priorities within the organization. They may be in the form of a plan, project, or strategy. Budgets consider external factors, such as market trends, economic conditions, and the like. The budget should list assumptions, targeted objectives, and agenda before number crunching begins.

The first step in creating a budget is to determine the overall or strategic goals and strategies of the business, which are then translated into specific long-term goals, annual budgets, and operating plans. Corporate goals include earnings growth, cost minimization, sales, production volume, return on investment, and product or service quality. The budget requires the analysis and study of historical information, current trends, and industry norms. Budgets may be prepared of expected revenue, costs, profits, cash flow, production purchases, net worth, and so on. Budgets should be prepared for all major areas of the business.

The techniques and details of preparing, reviewing, and approving budgets varies among companies. The process should be tailored to each entity’s individual needs. Five important areas in budgeting are planning, coordinating, directing, analyzing, and controlling. The longer the budgeting period, the less reliable are the estimates.

Budgets link the nonfinancial plans and controls that constitute daily managerial operations with the corresponding plans and controls designed to accomplish satisfactory earnings and financial position.

Effective budgeting requires the existence of:

  • Predictive ability
  • Clear channels of communication, authority, and responsibility
  • Accounting-generated accurate, reliable, and timely information
  • Compatibility and understandability of information
  • Support at all levels of the organization: upper, middle, and lower

The budget should be reviewed by a group so that there is a broad knowledge base. Budget figures should be honest to ensure trust between the parties. At the corporate level, the budget examines sales and production to estimate corporate earnings and cash flow. At the department level, the budget examines the effect of work output on costs. A departmental budget shows resources available, when and how they will be used, and expected accomplishments.

Budgets are useful tools in allocating resources (e.g., machinery, employees), making staff changes, scheduling production, and operating the business. Budgets help keep expenditures within defined limits. Consideration should be given to alternative methods of operations.

Budgets are by departments and responsibility centers. They should reflect the goals and objectives of each department through all levels of the organization. Budgeting aids all departmental areas including management, marketing, personnel, engineering, production, distribution, and facilities.

In budgeting, consideration should be given to the company’s manpower and production scheduling, labor relations, pricing, resources, new product introduction and development, raw material cycles, technological trends, inventory levels, turnover rate, product or service obsolescence, reliability of input data, stability of market or industry, seasonality, financing needs, and marketing and advertising. Consideration should also be given to the economy, politics, competition, changing consumer base and taste, and market share.

Budgets should be understandable and attainable. Flexibility and innovation is needed to allow for unexpected contingencies. Flexibility is aided by variable budgets, supplemental budgets, authorized variances, and review and revision. Budgets should be computerized to aid “what-if” analysis. Budgeting enhances flexibility through the planning process because alternative courses of action are considered in advance rather than forcing less-informed decisions to be made on the spot. As one factor changes, other factors within the budget will also change. Internal factors are controllable by the company whereas external factors usually cannot be controlled. Internal factors include risk and product innovation.

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Causes of Economic Downturns (Recessions and Depressions) – Labor, Capital, and Total Factor Productivity (TFP)

Causes of Economic Downturns (Recessions and Depressions)– Another question of great importance among macroeconomists is what makes output decline or grow more slowly. Clearly, anything that causes labor, capital, or TFP to fall could potentially cause a decline in output, or at least a decline in its rate of growth. A massive earthquake, for example, could reduce output by destroying vast amounts of physical capital. Similarly, a deadly epidemic could reduce output by decimating the labor force. Even something as seemingly noneconomic as religious strife could reduce output, by increasing tensions among employees of different faiths and thus reducing their collective efficiency and, in turn, Total Factor Productivity (TFP).

In some cases, however, output may decline sharply even in the absence of any earthquakes or epidemics. From 1929 to 1933, for example, national output declined by more than 30 percent in the United States. Economists and policy makers alike were as puzzled as they were horrified. President Herbert Hoover observed in October 1930 that although the economy was in a depression, “the fundamental assets of the Nation . . . have been unimpaired. . . . The gigantic
equipment and unparalleled organization for production and distribution are in many parts even stronger than two years ago.” Similarly, in his inaugural address in early 1933, President Franklin Roosevelt maintained that “our distress comes from no failure of substance. We are stricken by no plague of locusts. . . . Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply.” Since all the necessary inputs (labor and capital) were there, why had output fallen so dramatically in just a few short years?

The British economist John Maynard Keynes claimed to have the answer. “If our poverty were due to earthquake or famine or war—if we lacked material things and the resources to produce them,” he wrote in 1933, “we could not expect to find the means to prosperity except in hard work, abstinence, and invention.

In fact, our predicament is notoriously of another kind. It comes from some failure in the immaterial devices of the mind. . . . Nothing is required, and nothing will avail, except a little clear thinking.” His key insight, implied by the phrase “immaterial devices of the mind,” was that the problem was mainly one of expectations and psychology. For some reason, people had gotten it into their heads that the economy was in trouble, and that belief rapidly became self-fulfilling. Families decided that they had better save more to prepare for the future. Seeing a drop in consumption on the horizon, businesses decided to scale back both investment and production, leading to layoffs, which reduced workers’ incomes and thus exacerbated the drop in consumption.

Driven by nothing more than expectations, which Keynes would later refer to as “animal spirits,” the economy had fallen into a vicious downward spiral. Although the economy’s potential output remained large (since all the same factories were still there and the same workers still available, if called upon), actual output had collapsed as a result of a severe shortfall in demand.

In principle, such a collapse could not have occurred had prices been perfectly flexible and adjusted instantly to reequilibrate supply and demand. For example, if wages had fallen fast enough (and far enough) to reflect a reduced demand for labor, all unemployed workers would quickly have found new jobs, though admittedly at lower wages than they had enjoyed before. The point is that even with sudden changes in expectations, resources would never go to waste—or remain unemployed—if the price mechanism worked perfectly.

In practice, however, markets sometimes falter. For reasons that are still not fully understood, prices can be rigid or sticky, meaning that they don’t

always adjust as quickly or as completely as they should. As a result, a negative shock—including a sudden downturn in expectations—truly can drive an economy into an extended recession, where real incomes decline and both human and physical resources are left unemployed.

Starting around the time of Keynes, therefore, economists began to realize that there was more to economic growth than just the supply side. Demand mattered a great deal as well, particularly since it could sometimes fall short. In fact, over roughly the next 40 years, it became an article of faith among leading economists and government officials that it was the government’s responsibility to “manage demand” through fiscal and monetary policy, so as to reduce the duration and the severity of economic recessions and thus help stabilize the business cycle.

But for now it is worth remembering that actual output can fall short of potential output when demand falters. Labor, capital, and TFP are all very important, but so too are expectations.

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How to Empower Your Customer. Principles of Empowerment that Influence Customer Decision Making and Purchasing Process

How to Empower Your Customer – Empowering Customers

Empowering customers requires that a solid relationship and performance history be already established with the customer.

Empowerment involves trusting others to make important decisions and to take action. Empowering customers enables them to make critical decisions concerning doing business with you. This goes beyond the normal decisions that a customer might make such as the quality, delivery time, reorder point, etc., that would normally be part of their buying process.

Empowering the customer puts him or her in control of many of the decisions and actions that you might normally control.

This way the customer is not totally dependent on you to get the product or service that you provide. Ultimately, everyone’s needs are met in a more effective and efficient manner.

How to Empower Your Customer

The objective of empowering the customer is to streamline the buying process as much as possible and provide you the opportunity to be of service to the customer in even more important and value- added ways. It is not simply “dumping” your work off onto the customer, nor is it an abdication of your responsibilities to the customer in any way.

Empowering the customer involves enabling them to make more decisions and take more actions concerning buying your product or service. It puts much of the control of the buying process in the hands of the customer.

How to Empower the Customer

Everyone wants to be able to be more in control of those factors that are important to them, and your customers are no different. The concept and principles of empowerment involve moving decision making and even problem solving to those who are in the best positions to accept these responsibilities. There are a number of ways to empower your customers as part of their decision- making and purchasing process. The following are just a few of the ways to empower your customers:

  • Empower the customer to be able to reorder from you without your involvement.
  • Empower customers to contact your suppliers directly.
  • Empower customers to be involved in your pricing decisions.
  • Empower customers to provide input into marketing decisions for your company.
  • Empower customers to resolve problems concerning your product/service by themselves.
  • Empower customers to contact different people and resources within your organization directly without having to go through you first.
  • Empower customers to give you feedback about the quality of your product or services without you asking for it.

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How To Understand Buyer’s Purchasing Decision

How To Understand Buyer’s Purchasing Decision – Marketers are affected by exogenous variables, those beyond our control. These include social, cultural, political, legal, technological, scientific, economic, and competitive factors. Although marketers may not be able to prevent certain events or scenarios from taking place, they are nonetheless potentially able to anticipate such occurrences and can make contingency plans to address these changes. The key point here is to be proactive rather than reactive, to be an initiator rather than a victim of circumstances otherwise beyond your control.

How To Understand Buyer’s Purchasing Decision

How To Understand Buyer’s Purchasing Decision

9 Dimensions of Buyer Perception

The reasons that people decide to make a purchase or decline to do so can be boiled down to two primary dimensions and seven secondary dimensions that are corollaries of the primary ones.

Primary Dimensions

1) Perceived Risk

Potential customers ask themselves, “How can this product harm me”? The greater the marketer’s success in diminishing this perception of risk, the greater the likelihood of the purchase.

2) Relative Advantage

Potential customers also ask, “How is this product better for me than my other alternatives?” The greater the marketer’s success in increasing the perception of relative advantage associated with your product, the greater the likelihood of the purchase.

Secondary Dimensions

3) Observability

“Can the product’s benefits be seen?” The more observable the benefits,
the less the perceived risk and the greater the relative advantage.
This might help to explain why it is often more difficult to sell services
(which are not tangible) than it is to sell products (which are
tangible). Astute marketers add value (or the perception of it) by
including easy-to-use owner’s manuals and by remaining in close
touch with their customers, calling to their attention positive benchmarks
or milestones. For example, an automobile dealer might call
customers on the annual anniversary of a purchase to congratulate
them and (not coincidentally) to inform or remind them that one year
has passed without the need for any more than routine maintenance.

4) Immediacy

“How soon will I see these benefits?” The more immediate the benefits,
the less the perceived risk and the greater the relative advantage.
(See the section “Postpurchase Dissonance” later in this chapter.)

5) Complexity

“Is the product difficult to understand and use?” The more complex
the product is perceived to be, the less the relative advantage and the
greater the perceived risk.

6) Compatibility

“Is product’s usage congruent with my attitudes, opinions, and belief systems?” The more compatible the product is with one’s belief system, the less the perceived risk and the greater the relative

7) Trialability

“Can I use the product without making a permanent commitment?”
The greater the opportunity to try the product, the less the perceived
risk and the greater the relative advantage. Options can include
refunds and exchanges, and, in the case of lease arrangements,
upgrades. Ultimately, customer-focused marketers must assume risks
relating to trialability. If the product has merit and delivers on its
claims, the issue is merely academic. If, however, customers are displeased
with the product and choose to exercise their right of redress,
marketers should view this as a cost of doing business, albeit potentially

8) Divisibility

“Can I buy the product in a smaller quantity or size or otherwise
limit my purchase?” The smaller the quantity the customer can buy
at one time, the less the perceived risk and the greater the relative
advantage. While this is not physically possible for certain types of
transactions (i.e., one can’t buy one-half of a car), minimum quantity
requirements can be waived so that initial orders can be regarded, in
effect, as “samples” for which the customer pays.

9) Availability

“Are the product and its related accessories or services available to
me?” The more available the product, the less the perceived risk and
the greater the relative advantage. Increasingly, the focus is shifting
from the “core” product to accessories, on the part of the consumer as
well as the marketer. For example, anyone who has bought video game
hardware (e.g., Nintendo) will probably have ended up spending more
for the software accessories (e.g., additional programs for games) than
they originally spent for the primary video game product.

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How to Write a Real Estate Business Plan

How to Write a Real Estate Business Plan – Here are an overview of what goes into a business plan for a real estate enterprise.

How to Write a Real Estate Business Plan

How to Write a Real Estate Business Plan

An Executive Summary should includes the following information:
 The length of time you have been in operation
 A description of the structure of your operation as a single proprietorship, a partnership, or a corporation
 The names of your attorneys, accountants and other significant outsiders who lend their counsel and expertise to your operation
 The names of other investors in the enterprise, if any
 Your business name
 A list of properties you currently own that includes their values and the amount of income they produce, if any
 Your organization’s earnings in the tax years since it started
 The current net worth of your enterprise, including cash on hand, value of properties owned, and other real assets
 Specific strengths that will make the business succeed (You currently own a large older building in a prime location, for example, and now you need the funding to convert it into luxury condominiums.)
 Current limitations that can be overcome by new funding (It will allow you to buy a specific property, for example, or renovate a building you already own — or improve land and sell lots to developers.)
 The location of your enterprise (If you obtain funding using your business plan, will your location change?)
 The kind of real estate properties you invest in and/or plan to invest in
 A description of anything unique about the kind of properties you own or intend to own
 An explanation of any major opportunity that will enable your enterprise to make significant profits
 A profile of your customers (Will you be selling or renting properties, to families, or builders, or upscale retailers?)
 Other companies in competition with you (Note that your plan should document your ability to compete against these other entities by offering something different or better in the eyes of consumers.)
 An outline of significant trends and opportunities that will create new profits for you (For example, new train service has just been instituted between the town where you own property and a nearby city — a factor that makes your holdings immediately more profitable.)
 A profile of the person in charge of the business
 A pitch for why you or your partner(s) are qualified to make the enterprise a success (List prior experience, education, etc.)
 A projection of your immediate goals for the next year, two years, and later if possible
 The amount of money you have already invested in your enterprise
 The amount of money you need (if the primary purpose of writing the plan is to obtain funding) and how you intend to spend it, (For example, you will invest 40% of it to improve current buildings, 40% to acquire new properties, and the remaining 20% to outfit a new office.)
 The projected payback are you prepared to offer to investors, over what period of time

Your Current and Projected Properties and Holdings Analysis should include only the information that applies to you and your enterprise. Here are some questions you will probably want to answer:
 What properties, if any, do you currently own? What are their values? (Include appraisals or other documents if appropriate.)
 Are there more properties (or more land, or whatever) that you intend to acquire and develop in the years ahead, or are you in a market where that will be unlikely?
 Do you currently own offices or other facilities for business use? If so, where are they located and what is their value? What kind of properties are they (single family homes, self-storage facilities, etc.)?
 What additional properties would you like to acquire, on what kind of timetable?
 What has your primary real estate activity been in the past and how do you intend to change that in the future?
 Who are the consumers for your properties (your renters and/or projected buyers)? Include as much information about them as you can such as their income, assets, and eagerness to become your buyers or renters.
 How will obtaining funding allow you to reach more of your target consumers or generate profits from them more effectively?
 Are there other companies that have generated significant profits by doing what you are planning to do?
 Do you enjoy a significant advantage over your competitors? For example, perhaps you own the best piece of land in an area where other builders are already active, or you have retained the services of a great architect who has experience in designing the kind of properties you are intending to build.
 Who are the other primary business entities—contractors, consultants, etc. — whose help you will need to bring your plans to completion?
 What activities will you need to subcontract out, such as construction, land improvement, and paving, in order to profit from your plans?
 What are the potential risks of doing what you plan to do?
 Do you have in place permits, environmental studies, or other documents that show that your plan is relatively free of risk to potential investors

Your Market Plan should provide a more in-depth analysis of your customers, the people who will buy or rent your property. Note that you should include only information that lends credibility and support to your enterprises. You might even decide to omit this section entirely if you have adequately described your target consumers in earlier sections.
There are times, however, when your plan will genuinely benefit from the inclusion of this section. If you are seeking funding to develop a large number of houses in an area where other developers have made a lot of money in the same way, for example, you should include this section to explain your target consumers. Here are the questions to answer:
    Who are your target renters or buyers? Are they small families, single renters, or small companies who will rent your homes and/ or offices?
    How many of your target consumers are there? Where do they live?
    How much money do those consumers have to spend on what you have to offer?
    Are there significant marketing opportunities that can generate more income from your consumers (advertising in major newspapers in a nearby city that lies within commuting distance of the property you want to buy, for example)?
    Is there some significant characteristic of your properties that makes them immediately more appealing than your competition’s?
    Is there a particular share of the market that you intend to capture? (Perhaps the building you want to acquire would give you a 20% presence in the rental market in a particular town, for example.)
    How will you advertise or promote your properties in order to generate maximum profits?
    Do previous consumers behaviors, such as buying properties you already own, indicate that your future activities are likely to generate money?
    Can you include news articles, local business reports or other documents that support the validity of your business plans?

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