| If you just started a small business or are thinking | | | | pricing accordingly. Be prepared to do some market |
| about it you know that there are books and books of | | | | research. Always check competitors pricing to ensure |
| advice out there. While some advice can be helpful too | | | | that you are in line. You don't want to be priced too |
| much can be overwhelming and can make you turn | | | | high so that nobody will purchase your product or |
| away completely. Still, it's always a good idea to listen | | | | service. Likewise, you can't be priced so low that you |
| to the wisdom of those who went before and have | | | | lose money with each purchase. Instead, take all things |
| learned the hard way so you don't have to. Here are | | | | into consideration and price your product or service |
| the top tips for small businesses. | | | | realistically while allowing for some profit. |
| Use a business plan. Start by writing a detailed | | | | Try to be prudent when it comes to the overheads for |
| business plan that you can use throughout your startup | | | | your business. For example, telephone service is one |
| and beyond. The plan should include a statement of | | | | area that you may be able to lower the costs. There |
| purpose or mission statement, which can help to guide | | | | are many wholesale long distance providers where |
| you not only on startup but also all through the | | | | you can find good service with reasonable prices. |
| business. The plan also needs to detail the finances of | | | | When making the budget always allow a category for |
| the business. | | | | unexpected items. These may come in the form of |
| The finances of the business include all the expenses | | | | unexpected repairs or charges that you did not plan |
| for the business along with the projected sales. | | | | on. If you didn't budget for these types of expenses |
| Overheads such as rent, utilities and postage charges | | | | the money will come right off the bottom line - profits. |
| must all be considered as well as other key budget | | | | Instead, figure these expenses into the budget. Carry |
| items such as advertising. Don't forget about one-time | | | | them over from month to month so that you have |
| fees for business startup, licenses and inspections. | | | | enough in the fund in the case of a problem. This also |
| Another cost for all businesses is the monthly | | | | allows you some room for pricing changes in the |
| telephone charges. | | | | event that some of your raw materials or labor prices |
| Don't skimp on insurance. Always get the full insurance | | | | go up. |
| coverage that you can get, even if the costs are | | | | A good business plan can get you some |
| slightly higher each month. This can help tremendously | | | | much-needed dollars for your business. Investors must |
| in keeping you covered for all types of events. Many | | | | see a business plan before they will invest money in |
| small businesses have been wiped out entirely due to | | | | your business. Yet investors can provide the money |
| an accident or problem that was not covered by | | | | you need to get the business going. Banks and loan |
| insurance. | | | | officers also must review a business plan before |
| Then you will need to figure out the actual material | | | | granting a small business loan. |
| costs for your product or service. This should include | | | | If you are unsure about how to write a business plan |
| any labor necessary. Don't assume that your labor is | | | | get some help. A professional can help write a great |
| free. This is a mistake many new small business | | | | plan for you and may be well worth the initial expense. |
| owners make. Instead, be sure that you account for | | | | Look at other business plans for similar businesses to |
| your own salary as well as the salary of any other | | | | get an idea of what it should be like. Finally, you can |
| employees that will be required. | | | | tweak the business plan as needed. Use the business |
| Once you have the costs figured out you can set your | | | | plan as a roadmap to the success of your business. |