Up And Running A Business

                      THE LIST OF CONTENTS

The Preface

1        The Psychology Of Success

2        Having What It Takes

3        What Can I Do?

4        Financial Freedom

5        Setting Up

6        Testing The Water

7        Raising Money

8        More About Finance

9        The Winning Image

10       Selling Success

11       Taking Control

12       Practical Prosperity Guide

                             PREFACE

It is fair to say that absolutely anyone can start their own

business.  You simply choose a name, inform Inland Revenue and

the DHSS, and away you go!  The problem comes in making it into a

profitable enterprise.

Although anyone can start a business, not everyone will be

successful, and get rich.  I had always thought there must be

some big secret to getting rich and successful.  And I was right!

I spent nine months asking the rich how they made it.  And I'll

spend the rest of my life being glad I did!

Getting rich is NOT the product of good fortune.  It is the

outcome of putting certain principles and secrets to work for

you.  Within this book are the secrets, and techniques of the

rich and successful.

If you are serious about wanting to make your fortune, and are

willing to put in a hell of a lot of hard work, this book is just

what you need.  Making the transition to self-employment is not

always easy, and useful advice is often hard to get.

Within this book you will find all the information you need. 

Apply the principles given, and there is no reason why you won't

become richer than you could imagine.

I am forever indebted to the people who gave me their valuable

time.  They have shown me that success is possible for anyone who

really wants it.

I could have written the book in a documentary style, but I felt

that it would sound excruciating.  Constant references to Mr X,

and Mrs Z. are fine in small doses, but for a book this size it

would eventually drive you mad.  In the end I decided on a simple

'how to ...' style, using fictional examples to explain the

facts.

1.       THE PSYCHOLOGY OF SUCCESS

In Up and Running you will find out what makes one person

successful in a field where other people fail.  How a 'self-made

man' can rise up through adversity to be incredibly rich and

successful.  And you will discover the special characteristics

that are needed to be successful.

Yes, there are special characteristics that set people above

others.  Without them, your chance of being rich is practically

nil.  But the good news is that these characteristics CAN be

acquired and put to work for you.  Up and Running will show you

how you can transform your life, but it is up to you to apply

what you learn.

Most people never get past the first step to success - They will

never get rich because they will not allow it to happen!  They do

not possess the most powerful characteristic of all successful

people - belief.  They refuse to believe that they will ever be

any different to how they are now.  As a result of this negative

thinking, they never are.

Because of their way of life, they have become conditioned for

failure - accepting it as a fact of life.  If you really want to

be rich - you must start applying a few important rules.  Follow

these steps and success will follow.

VISUALIZING YOUR FUTURE

Everybody has a dream.  A fantasy, if you like.  Usually it takes

the form of something we would like to have, or something we

would like to happen to us.  How we respond to this dream will

decide whether we are successful, or whether we remain as we are. 

We could continue to dream and say 'If only ...', knowing that we

will never see our dream come true.  In this case our dream

becomes a SUBSTITUTE for action.  Or we can act on our dream and

try to make it happen.  In this case our dream becomes a MODEL

for our action.

I think we all have a dream.  Be a millionaire, own a cottage in

the country, own a Rolls Royce, whatever ... That dream will

remain only a dream for as long as we let it.  In most cases this

is forever.

Many people think that a dream is just a pleasant fantasy.  Well,

it can be.  But the most important aspect of a dream is that it

is a signal for action.  The most incredible success stories all

began with a dream.  A dream is a goal for us to achieve, a

purpose in life - a destination.

That last point is very important.  A goal is essential if you

are to achieve great wealth.  And it is important that you focus

on a specific goal in your dream.  It is no good just saying you

want to be rich.  This is not specific enough.  That would be

like going into a bank and asking for plenty of money!  To set an

effective goal it must be a specific one.  Your ultimate goal

will be reached via many smaller, short-term 'goals'.  Remember,

a goal is a destination, and you can't get there if you don't

know where you're going.

POWER OF DESIRE

Once you know what you want, you must then imagine what life

would be when you have it.  If you want to be a millionaire,

think of how you would spend your free time, and the luxuries you

would enjoy.  This brings into play the Power of Desire.  This is

an enormously strong emotion.  When we desire, we tend to make

much more positive attempts to attain the object of our craving.

Buy a small exercise book and write about a typical day (or day

off!) when you are rich.  Imagine what you would be able to do

with increased spending power!  Write everything that you would

love to do, given the chance.  Be as explicit as you like, and

write it as vividly as you can.

When you have finished, read it back.  What does it do to you?

can you feel yourself aching to be able to live life that way?

Does it make you really jealous of those who are enjoying that

sort of life?  If it does, then well done.  You have just created

desire.  If you have done it well enough, you should want that

life so much that it hurts!

Read this exercise book every day.  Add more to it if you think

of something else you would like to do.  Your book will motivate

you through desire.  It will remind you of the reward waiting for

you - and it will inspire you to succeed.

So now go back over your dream of the future.  You are now going

to focus on the things you desire.  You no longer want a luxury

car - you want a Rolls Royce.  It isn't a house, it's the house. 

The one on Acacia Avenue that you pass every day on your way to

work.  You must now start to focus on your 'goals'.

OBSERVE THE REALITY

The next stage of action is to observe the reality.  If there is

a house you would like, then visit it often.  By this I don't

mean you should stand under the adjacent lamp-post and leer

ghoulishly at it until the police arrive!  You need only walk

past it.  Plan what changes you will make to it when it is yours,

mentally re-arrange the garden and picture how you will change it

to suit you.

If you know what sort of car you would buy, look at a model in a

garage.  Find out about it.  Get the specifics.  Find out how

much it costs, what extra's are available, and other relevant

facts.  Remember, you are converting your dream into hard facts. 

You are creating a specific destination.  You will know how much

the car will cost you; how much the house is worth; what sort of

suit you would buy, and how much it will cost.

By doing this, you will be taking a positive step towards

achieving your dream.  Whereas before you were a thinker, now you

are a doer.  Positive action is characteristic of a successful

entrepreneur.

LOOK TO THE FUTURE

An important part of visualizing your dream is the ability to

look to the future.  In doing this you are applying the same

technique as millions of other successful people.  You must see

your life as it will be when your dream comes to fruition.  You

are preparing yourself to accept your own success.

Many of the people who buy books on starting a business actually

have to chance of starting up.  They can't imagine themselves

ever running their own business and earning unlimited wages. 

They never see things how they can be - only how they are.  Don't

make this mistake.  Know what you want, know how to get it, see

how it will be, and then go for it!

THE DANGER OF HATE

As you bought this book, it would be safe to assume that you want

to change your life.  You want more money - more control over

your life - more respect.  But just as we each have a dream, we

also have a reality.

Unfortunately for most people, the reality bears no similarity

whatsoever to the dream.  In many cases, the dream exists as a

means of escape from the reality.

Think now of your reality - the life you lead every day.  What do

you do?  How do you feel as you awake?  Do you any enthusiasm for

your way of life?  Do you enjoy your work, or are you on the

dole?  Then ask yourself the important question: Do you resent

having to live in this way?  If you answer 'Yes' to that

question, then you are in danger of succumbing to the most

destructive human emotion - hate.

If you hate the life you live, the people you deal with, the

actions you are forced to take, then you may well find yourself

rapidly rushing towards disaster.  When you hate, you may as well

be drunk!  You no longer function in a creative manner.  Your

mind is geared toward destruction.  Instead of aiming to create a

new life for yourself, you will become obsessed with the act of

revenge.

The more that you hate the people and situations around you, the

more your mind becomes poisoned with the purpose of getting even. 

Logical thought is impossible and hate then becomes a substitute

for action.  Avoid hate at all costs.  It will destroy both you,

and your dreams of success.  You must learn NOW, to resist the

urge to hate.  It achieves nothing constructive.

Take a good look at your way of life.  Do you find you always

have to make do with what you have got, because you can't afford

a replacement?  Are you always having to put off paying bills

until next week?  Have you never enough money to enjoy yourself?

Are you unhappy with the area in which you live?

You may find you are regularly having to write a cheque on Monday

and hoping that you will be able to cover it by Thursday.  Or you

may just be sick of the daily grind of early mornings, or the

regular night shift.  If most of these apply to you, then you

probably hate living this way.  So now make a POSITIVE effort to

achieve success.  Only through positive endeavour and thought

will you achieve your goal.  Hate is negative and destructive.

Although your current way of life is hard, think not of how to

get rid of it, but how to REPLACE it with a better way of life. 

Think success - not revenge.  Assess what you resent about life

now.

You may even resent the things that you would normally enjoy,

were your circumstances different.  Occasions like Christmas,

birthday's, Bank Holiday's, and Easter can be very trying times

when you have no money to spend.  Children don't understand the

restrictions of a tight budget, and it can cause great distress

to a parent who is unable to give his child the gift, or day out,

that they would like.  Now imagine the difference in these

circumstances when you are rich.  When you have achieved success,

you will wonder what all the fuss was about!

There is no harm in imagining the difference your wealth will

make to your lifestyle - but approach it lightheartedly.  Say to

yourself: I will work to be a success so I can have the

satisfaction of being able to tell the TV rental man where to

stick his television!  And so I can see the look on the rent

man's face when I tell him to not bother calling next fortnight!

This attitude is positive, but don't hate the way things are, or

the people it involves.  That would only make things worse.  You

will have plenty of time to reflect on your past when you are

rich!

These things that make you miserable and depressed will be all

behind you when you put the secrets of success to work.  Imagine

life without all these annoying and trying times.  You will be

able to enjoy Christmas, and give your kids what they want.  That

squillion function, water-resistant, fire-proof, solar-powered

digital watch with compact disc and stereo speakers, (that they

have always wanted), will be a drop in the ocean for you!

THE POWER OF THE POSITIVE

Despite how you may feel about yourself, you haven't always been

a loser.  Nobody is here to be a failure.  The difference between

a winner and a loser is their attitude to life.

A winner will always be thinking positive things - planning for

the future, and taking pleasure from previous successes.  A

loser, on the other hand, never thinks of success.  He will be

able to remember his failures, but views any success as a stroke

of luck.

As you will find out later, there is no such thing as luck,

either good or bad.  If you are in the position of this loser,

then you must now begin to think in positive terms.  You can

change your thinking.

THE SENSE OF SUCCESS

Cast your mind back to your last success.  It doesn't matter how

insignificant it might seem.  A success is when something happens

to you in just the way that you intended it to.  Even the perfect

boiled egg is a success!

Once you have established what your last success was, try to

remember how you felt at that moment of triumph.  Did you feel

elated, surprised, shocked?  Was it an unexpected triumph, or a

carefully calculated success?  It doesn't matter how the success

struck you - only how you felt afterwards.  You should have felt

proud of yourself.  At that moment you were a winner.

It is this feeling that you should seek to remember as often as

you can.  It was a time when everything went right for you.  It

will remind you that you can succeed, and that you are not a

loser or a failure.  I urge you to remember the feeling of

success.  The feeling of superiority.  The urge to say 'I did

that'.  You must savour the memories of ALL of your successes. 

It is these sensations that you will learn to enjoy all of the

time.  Very shortly, success will become a way of life for you.

Make a habit of recalling all your successes.  Surround yourself

with memories of your achievements.  Remember, an achievement can

be anything.  The time when you managed to get a date with the

best looking boy or girl in the school  How you were awarded top

marks in a test at school.

The first job you managed to get.  That was a success.  The

interviewer obviously saw that you were a capable person - the

best of all those he had seen.  All of these happy memories are

important keys in the psychology of success.  They are the

building blocks to your success.  Each one is a dream made

reality.

There is a saying that goes, 'Nothing succeeds like success'.  In

that saying there is a wealth of truth.  There is also a very

important secret in there too.  The key to success is to see it

from a whole new angle.

We see the principle of success at work in so many ways.  An

athlete will set a personal best.  He attains a level never

before achieved.  Yet within weeks, or even days, he surpasses

even this record.  He has programmed himself for success.  His

mind has been ordered to expect success.  As a result, he will

not accept defeat.  He will persevere until he reaches new

heights of success.  They will come because he expects them to.

THE SENSE OF SUCCESS

I prefer to think of success not as a favourable outcome, but as

a sense.  In the same way that you can smell a flower, you can

also create success.

As we find our place in society, the vast majority of us lose

this sense, while a select few develop it.  The manual worker in

a factory may decide that he has no chance of promotion in his

job.  Once he has accepted this as a 'lost cause' he will lose

his sense of success.  He has accepted failure.  The man will

NEVER achieve wealth.

Once he has lost the sense of success, he will never entertain

the thought that he could be rich.  He has conditioned himself to

accept what he has.  He thinks the only way that he would get

rich is by winning the pools.  Even if somebody gave him the

instructions for making a fortune, he most likely wouldn't act on

them.  His mind is not geared for success.  He has forgotten what

it feels like.  Because he doesn't believe he can get rich, he

will fail to apply the information he is given, and he will

remain forever in his rut.

On the other hand, this man may decide that he will not accept

things the way they are.  He may work at the job, saving part of

his wage to go towards starting his own business.

The highly successful entrepreneur develops his sense of success

and applies it in everything he does.  This man has the right

attitude to attain enormous wealth.  As a result, his first

success is rapidly followed by another.  Success follows success. 

It truly does become a way of life.  He finds that one success

becomes a stepping stone to the next one.  It becomes a natural

progression - and he is well on his way to becoming a

millionaire.  If you can cultivate this attitude within yourself,

you CAN become a millionaire!

GET THE SUCCESS HABIT

In order to develop your sense of success you must first have

remembered your last triumph.  Once you can savour the feeling of

success you must go out with the FIRM conviction that you will

taste it again in the next thing you do.  Then you must begin to

anticipate it in everything that you do.  You must tell

yourself:

                     I DON'T ACCEPT FAILURE

                        I EXPECT SUCCESS

                         IT IS MY RIGHT

Motivating yourself to succeed is the key to continued success. 

Without that, you are unlikely to win again.

Look again at the slogan.  Memorize it and apply it in everything

that you do.  Soon it will become part of your personality.  It

will drive you to new heights and victories.  Write it on a piece

of card, and place it where you will see it every day.  Put it

beside your bed so they are the first words you see when you

start the new day.  Put another card on your desk so you are

reminded as you work.

Your new way of thinking will reflect on others.  They will see a

determined man or woman, hell-bent on achieving their goal in

life.  Respect will come your way, and success will automatically

follow.

I CAN AND I WILL

When your next challenge arises, apply your new attitude to it. 

NO matter what it is, say to yourself: 'I CAN DO IT - AND I WILL

DO IT'.  Go into it knowing you will succeed.

Positive thought and determination has won more success than all

the crossed fingers.  Have the courage of your convictions.  If

you believe in something, then say so.  If you are sure it will

work, show them how.

If you go into a task with a positive attitude and confidence in

your ability, you'll come out a winner.

Remember:

                     I DON'T ACCEPT FAILURE

                        I EXPECT SUCCESS

                         IT IS MY RIGHT

DON'T TRUST TO LUCK

All losers think that the only way they could get rich is by

winning the pools.  If you are thinking the same way, or even

consider it a good chance, I beg you to think again.  Your chance

of winning the pools is many millions to one.

When they speak of what they would do when they get rich, what

they are really saying is when they win the pools.  Don't ever

rely upon winning a fortune.  As much as the pools companies

might have you believe, more "X's" don't give you any

significantly better chance of winning the jackpot.  The pools is

basically a lottery of immense scale.  There is no law of average

either.  Don't be fooled into thinking your numbers will 'come

around' in time.  All games are different every week.

The only sure way of getting rich is by earning it - and it

really can be great fun as you will see.  Leave the pools to the

losers, and set about getting some real money.  It's a lot easier

than you think!

JOIN THE CLUB

You must now begin to see yourself as different from how you

were.  You are now taking the greatest challenge of your life. 

Commit yourself to success, and ignore the losers.  If you look

back over the years at man's courage and determination to

succeed, you will soon see that success comes from within.

Success in every field is a result of the psychology of success. 

World records are being broken every day in sport.  Scientists

make new discoveries through their determination to succeed.  The

will to win makes champions of us all.

2.       HAVING WHAT IT TAKES

There are now four times as many self-employed people than there

was in 1979.  Running your own business is no longer the

unattainable dream it once seemed.  Of the whole working

population, over one in ten are self-employed!  Contrary to

popular opinion, you don't need vast amounts of cash, or business

experience, to set up on your own.  Practically anyone can do it.

It is not strictly true to say that nobody ever got rich by

working for someone else.  What is true is that the chance of

getting rich is much higher when you run your own business.  As

you know, almost anyone can start their own business, but it is

their motivation that will decide whether they make a fortune

from doing so.

MOTIVATION

What motivates you?  In other words, what are you aiming to

achieve from your own business?  If you have a clear-cut idea of

the benefits you are hoping to receive, then you are more likely

to succeed in making a success of your venture.

There are many benefits to be enjoyed once you have your own

successful business.  Some will appeal to you more than others. 

You may place independence very highly on your list of benefits. 

Many people start their own business with little regard for

wealth, but place their independence at the top of the list. 

These people may never get rich, but they have achieved their

aim.  They no longer have to rely upon anyone else for their

income.  If you are not sure of your priorities, it is important

that you discover them now.

Most people starting their own business are looking for great

financial reward.  There is no limit to the money you can make in

your own business.  You yourself are responsible for how your

business develops.  You may settle for a certain level of income,

being quite content to generate a steady and regular profit,

without the desire to expand.  Alternatively, if wealth is your

priority, then you will be motivated by the desire to make higher

profits, and increase them at every available opportunity.

With higher profits will come status.  This may come as a

surprise to you at the time, but with greater wealth comes

greater respect from others.  You will be looked up to as an

important member of the community.  With wealth comes power. 

Whatever it is that you seek, remind yourself often.  It is vital

to your success.

ARE YOU POSITIVE?

Now that you know where you are going, let's see about getting

there.  Firstly, check your luggage.  Are you carrying anything

likely to slow you down?

If you have already mentioned to your friends at the pub that you

will soon be rich, you will already know their reactions.  For a

start they will laugh at you.  They will certainly try to put you

off.  And if you listen to them long enough - they will.

I think we all know those people who talk endlessly about what

they will do when they become rich.  They always seem to know

what they want out of life, but they never take any positive

action in order to try and achieve it.

These people never achieved nothing.  Yet they feel qualified to

tell you that you will never make it.  Why?  The answer is

simple.  Because THEY never will!  And they know it.

NO EASY RIDE

Running your own business is a supreme test of the will.  You

will find yourself having to work much harder and longer than you

ever had to before.  This is vital to your success.

Starting your money machine - your own business - is no easy

ride.  There are no freebies in the success business.  It takes

great self-discipline to overcome the early problems related to

setting up a business, sometimes it can take years before a

particular business is able to provide its owner with a good

income.

Money can be a rare commodity in the early days of a business. 

What little there is will probably be needed to finance your

venture, and you may have to prepare for an initial drop in your

income.  How soon you start to make money will depend on you.

You need to exercise tremendous self-discipline when you start

your own business.  You are accountable to nobody but yourself. 

There are no bosses on your back, watching over you to see you do

your work.  Everything is down to you - and it is very easy to

just please yourself.

There is no nine-to-five in your own business.  You are your

business, and as such you are always open.  It is very likely

that you may find yourself working very long hours in the early

days.  There is also no guarantee of being paid.  These long

hours will probably stretch into your weekends and nights,

leaving you little chance to socialize, and less chance of a

holiday.

If the prospect of all this fills you with dread, then the

chances are that you are probably not suited to the discipline of

self-employment.  Finding this out after you have already put all

your available cash into a business, can be devastating.  It is

therefore very important to understand the sacrifices involved at

the outset, before committing yourself to going it alone.

3.       WHAT CAN I DO?

Having read this far, don't be put off if you can't imagine

anything you could possibly do, in a self-employed capacity, that

would earn you a living.  Many successful businesses are simple,

home-based jobs requiring little, or no, technical knowledge. 

You don't always need experience.  Over half of all people

starting their own business actually choose something to do

different from their previous job.

By putting your mind to work in the correct manner, you will be

able to find the business idea that is right for you.  Even if

you have already chosen your work, please do read this chapter. 

It will help evaluate your idea - and may even change your mind!

Practically everything that you do is a skill.  Whether it is

something you did for a previous employer, a hobby, or even

looking after the home and children.  To find out what you are

best suited to, let's go through a brief list of activities and

skills that you may possess, and try to formulate some ideas from

them.

SKILLS ASSESSMENT

PREVIOUS EMPLOYMENT

* Hairdressing or beauty treatment.

If you have experience in this field, you may be able to start

seeing clients in your, or their, home.  If you work from your

own home, you may need planning permission from the local

authority.  Obviously you will need to have sufficient room to

allow customers to wait in comfort, and to be treated.  A

telephone would be essential, as would an appointment book.

* Teaching.

There are a great many opportunities for teaching.  Private

tutors can command high prices for the privilege of their

personal attention.  The most popular subjects for private

tutoring are languages, music, typing and driving.  It is

advisable to know your subject extremely well before starting out

as a tutor.  For some subjects you need to satisfy certain

conditions.  Always check first.

* Typing.

There are endless opportunities for the proficient typist. 

Working from home, and with the right equipment, you can earn

very good money.  Many typing agencies started out as 'one woman

from home' ventures.  If you can offer excellent quality and can

meet deadlines, then you can be assured of a good regular income.

* Word processing.

The logical progression from typing.  If you have the equipment,

including a good quality printer (preferably a daisywheel), then

you can offer the utmost quality - far superior to an ordinary

typewriter, and with the bonus of no mistakes.

* Book-keeping.

If you have knowledge in this field, you can do well as a

freelancer, offering help to small businesses or even larger

ones.  Little capital is needed and if you have your own

computer, then a good accounting program can significantly

increase your work-rate.  By advertising locally you should

easily find work.

HOBBIES AND PASTIMES

* Craftwork.

If you are a keen and skilful maker of craftwork, you will

probably already know of its popularity among the buying public. 

If you wanted to reach a larger audience, consider mail-order

selling, or perhaps a market stall.  If you can find a popular

product, then you can be sure of a good income.  Many firms

started as market stalls and are now exporting millions of pounds

worth of goods to other countries.

* Writing.

By combining your literary skill with any specialist knowledge

you may have, you can write articles for magazines and trade

journals.  There is an endless list of writing opportunities

ranging from freelance article writing, to publishing your own

book!  Joining one of the many local writer's clubs can give you

vital feedback on what work is selling.  A good word-processor

can greatly improve the quality and presentation of your work,

and save you considerable time and effort.

* Photography.

Just as in writing, photography offers a wealth of business

opportunities for very little outlay.  You could offer freelance

work to magazines, newspapers, and estate agents - or you could

give a wedding photo and portrait service.  If you are good at

writing as well, then you could offer to design and produce

publicity manuals and booklets for shops and businesses.  There

is a lot of fun to be derived, as well as a lot of money to be

made, from being a freelance photographer.

SKILLS FROM THE HOME

* Home Manager.

An aptitude in household management can offer itself to many job

ideas.  Carpet cleaning, upholstery cleaning, furniture repair,

and a whole host of related skills, are widely advertised in

local newspapers.  A home help could offer service to the busy

professional people who have little time to do the job

themselves.

* Child Minder.

If you enjoy the task of looking after children, then

child-minding could be your answer.  All the patience of Job is

required, but the pleasures are many for those who love children.

* Cooking.

If you enjoy cooking, you could possibly find an outlet for your

wares in the local bakery, pub, health-food shop, or restaurant. 

Traditional home-made items are more popular than ever with a

public tired of tasteless instant foods.  Transport may be an

important consideration for those larger orders.

* Gardening.

This is one of those hobbies that you either love or hate.  If

you love it, appeal to those who hate it!  Tell them how lovely

their garden will look after you have spent a day in it.  People

who haven't time or are disabled, would appreciate someone

landscaping their garden - or even just weeding it or mowing the

lawn.  You could specialise in a particular type of work; e.g. 

rockery, planting vegetables, or weeding.  You could even offer a

complete landscaping service.

* Painting and Decorating.

Another of those love-hate jobs!  There will always be a great

demand for painters and decorators.  If you like this job then

tell those who don't!  In the same way as for gardening, you can

offer to specialise in a particular aspect: e.g. artexing, or

offer a discount for the whole house re-decorating.

OTHER JOBS

* Buying and Selling.

One of the most popular types of self-employment is the old

'in-and-out' selling technique of the second-hand salesman.  You

advertise as a buyer for all type of household equipment,

electronic equipment, furniture and so on.  You buy them for a

low price, and re-sell them at a higher price.  Profit-margins

are usually high.  There are many unscrupulous dealers who will

knowingly try to cheat people out of a fair price for their

belongings, and honesty is always the best policy if you find

this job appealing.  Premises are often essential, as is

transport.

* Hiring Out.

Similar to buying and selling, except you are buying and hiring

out.  It is usually better to specialise in a few items, rather

than trying to offer everyone everything!  Some items are popular

at particular times of the year only - so obviously you would

need to ensure that what you have is popular all the time.  You

are likely to meet with a more regular demand for television sets

than barbecues.

STILL STUCK?

If you are still stuck for a job to do - assess your interests. 

What do you really enjoy doing?  You have a much better chance of

being successful if you are full of excitement for what you are

doing.  Your success depends upon how much you enjoy your work. 

If you find it boring, stressful, or difficult, the chances are

you won't achieve any measure of wealth.  This is because you

won't be inspired to work hard at it.  If you love your job -

working harder at it is a pleasure.  Take a look at your

interests, how can you apply them to a job?

If you enjoy driving, you are more likely to want to put in those

few extra hours as a taxi-driver, than as a painter.  If you find

it difficult to meet people, you won't derive much enjoyment from

running a shop - whereas writing articles won't worry you

(providing, of course, you like writing).

You spend so much of your life working, it is essential than you

enjoy it.  If you can honestly say you enjoy your work, then you

are well on your way to that fortune.

Before you decide upon your business idea, think of how it will

prosper.  Don't become a sledge-maker in April!  Think of other

people doing the same job.  Are they doing any better than they

were two years ago?  If they aren't (and if nobody else in the

same field is either), then it is safe to assume there is little

chance of you being able to make a profitable enterprise from it.

WHAT DO I DO BEST?

In setting up your own business, as well as enjoying what you do,

you should also consider what you are good at.  If you have any

outstanding skills or qualities it is worthwhile sitting down and

working out how you can apply these to a business idea.

SKILLS & QUALITIES

* Are you food with words and figures?

If so, thin of business ideas relating to written material,

compilation, book-keeping, and so on.

* Do you have a knack of communicating well with people?

Look at teaching, advising, helping, buying and selling, and so

on.

* Are you good at making things?

Consider craftwork, repairing things, and so on.

* Are you very good at looking after home matters?

You could be a child-minder, or a home manager.

* Do you have a good knowledge of antiques?

There may be an opportunity to buy and sell antiques, or even

open your own antiques shop.  If you also like writing, you could

write articles about antiques.

* Can you drive?

Many jobs require transport, but in itself there are taxi-driving

and removal & delivery services.

WHAT FIELD?

There are basically five types of businesses:

Trading, buying and selling.

Service using materials, painting & decorating.

Service, child-minder.

Primary, market gardener.

Manufacturing, pottery.

Your business idea will fall into one of these categories.  Even

if you have two businesses, it is likely that they will come from

the same category.

Trading.  The main feature of this type of business is that it

involves buying and selling goods.   In this category your main

concern is in buying adequate stock, storing it, and displaying

it for sale.

Service using materials.  These businesses employ materials for

use in their work or premises, but don't actually re-sell the

materials themselves.  Instead they comprise part of the work

being performed.  Example's being: barber, and beauty salon.

Service.  In this case, the businessman is selling the skill he

possesses.  This category offers by far the most business

opportunities for the self-employed.  These jobs rarely require

great capital or stock.

Primary.  This category covers the natural items like plants,

animals, and so on.  It covers all kinds of animal-breeding and

vegetable-growing.

Manufacturing.  These all require premises and machinery and are

unlikely starting points for the self-employed.

By now you should have some idea of what you would like to do in

your new business.  This chapter should have given you a basic

idea of the job best suited to you.  The setting-up of individual

occupations is not within the scope of Up and Running - but it

should have given you an insight into the various considerations

to be given to making your choice.  We all have our own skills

and interests.  No two people are alike - and as such, the final

decision is down to you.  The rest of this book will show you how

to turn your idea into a winner.

4.       FINANCIAL FREEDOM

The biggest mistake you can make when starting in business, is to

think that all you need is money.  Creating your own financial

freedom is not simple - or easy.  It is not simply a matter of

having enough money.  There are more important aspects to

business success than your capital.

I have outlined what I consider to be the seven most important

considerations when starting a new business.  I urge you to read

them thoroughly, and to take the principles to heart.  If you

apply these secrets in your own business, you will experience

greater success and a higher income.

7 SECRETS OF FINANCIAL FREEDOM

1.       Enjoy Your Work

I make no apology for repeating this point - it really is the

most vital key to ensuring your success.  You must get fun out of

your work, especially when you are in a self-employed capacity. 

Hard work is the quickest route to great wealth - but hard work

must not be a drag.

The majority of 'days off' are caused, not by genuine illness,

but by the stress, or boredom, of the job.  In your own business,

long hours are going to be necessary to get you started in the

right direction.  They will also be necessary to keep you going

the same way.  If you hate the job you have chosen, these long

hours will never get worked.  There will be no motivation within

yourself to do them, and your business will most certainly fail.

If you really enjoy the work that you do, then it is no longer a

task, it is a pleasure.  Take a look at some of the richest

people in the world - sportsmen, company directors, singers,

actors - they all enjoy what they do.  Hard work is vital to gain

success and great wealth.  It is much easier to work hard if you

really enjoy what you do.

When you stop to consider how much of your life you spend

working, then it is also good sense to enjoy what you do.  If you

really enjoy your work, then you will be a much happier person. 

You won't have the stress of doing a job that you hate, and you

will probably live much longer as a result.

2.       Set Achievable Goals

If you have followed Up and Running so far, you will already have

set yourself some goals.  You need a goal to know what you are

aiming for in your business.  An important point here is to set

an achievable goal.  When you start your new business, set

yourself a short-term goal - one that won't take years to

achieve.  This is much more important than you may realise.

Goals are related to success.  The achievement of one is proof of

the other, and so a goal that is achieved in a short time will

give you an early taste of success.  You will be able to

experience the thrill and satisfaction of your own success in

business.

The best way to set your goals is by setting one short-term goal

at a time.  Write them into a small desk diary, entering your

particular goal onto the space allowed for the date you hope to

achieve it.  Perhaps your first goal could be to have some good

letterheads printed.  Once you have achieved this goal, tick it

off in your diary and congratulate yourself.  Then set your next

one.

Continue in this fashion, setting a new goal every time you have

attained your current one.  In this way you will find yourself

constantly striving for success in a positive and orderly

fashion.  The little, immediate goals will always lead you on to

bigger ones.  This is how success is achieved.  One goal will

automatically set you on the way to achieve another.

3.       Don't Be a Do-Nothing

Don't make the mistake of putting things off until the next day,

or avoiding jobs you don't like doing.  You should establish what

jobs have to be done on a particular day, which are the important

jobs, and ensure that these jobs are done first, before the

others.

When you start putting jobs off, they tend to never get done, or

they have to be rushed through at the last minute, resulting in a

below standard job.  It is the easiest thing in the world to find

a reason why something shouldn't get done straight away - and it

always seems a good idea at the time.  But it is not good

business sense, and will only cause you endless problems.  Avoid

it.

4.       Keep Your Fingers On the Vital Signs

The first three months of your business are likely to be the most

crucial.  During this time you will be adapting to new techniques

and methods that you have never done before.  There is always a

tendency during this period, to consider your book-keeping as

something that will be done when you've got the business on its

feet.  You may think you have more important things to do - like

running a business.

It is however, very important that you resist these thoughts, and

always keep on top of your book-keeping.  You must think of it,

not as a chore, but as a method of knowing exactly how your

business is performing at any given time.  Your books will tell

you how much you have going in, and out of the business.  Where

your money is going, and how often.  It will also serve as an

early-warning system for any potential cash-flow problems.  All

these things are vital to your business in its infancy, and you

should strive to make sure you always know what is happening.

Make a habit of doing your books on the same day every week.  A

good technique is doing them on a Monday night, usually the

quietest day of the week in business terms.  Whenever you decide

to do them, make it a regular thing.

Once you have completed them, check them for signs of how your

business is progressing.  Are you spending too much on

advertising in one magazine for little return?  Are you having

difficulty persuading a particular customer to pay?  Keep your

finger on the vital signs of your business.  Always be aware of

how you are doing.

5.       Get the Right Advice

This does not refer to professional advice from people like

accountants and solicitors - it is obvious you need that.  In

this case it refers to feedback from others, in relation to your

product or service.  You can have too little advice - and you can

also have too much.

However much advice you get, make sure it's the right advice.  In

other words, make sure that the advice you get has been given by

those who are qualified to give it.  You need advice as a

sounding board for your ideas, and to give you a fresh

perspective on things.

Ask for advice from those qualified to give it - and then

evaluate it honestly.  Don't think of it as being correct - only

as a second opinion.  Once you have your advice - assess it all -

choose what is relevant - and use it.  You need a few different

opinions to build up a cross-section of ideas, but you don't want

irrelevant ones.

6.       Show Your Integrity

This is vital from the word go.  If you say you will do something

- make sure you do it.  And make sure you do it when you said you

would, and for the price you quoted.  You must show people that

you are true to your word.  As soon as they see you are a man of

your word, they will always come back to you, and will recommend

you to others.

Integrity is the lifeblood of a good business.  Good old

fashioned reliability is a virtue well worth demonstrating.  By

the same token, don't make it hard to keep your word.  Don't make

rash promises to do something.  Only promise something if you

KNOW you can deliver.  People tend to remember the time when you

didn't fulfil the order, more than the times that you did.

7.       Be On Your Toes

Don't get complacent when you start to do well.  The keyword is

Adapt at Will.  You must be alert to all new developments in your

line of business, and be ready to adopt any that will enhance

your business.  Don't think you know everything and don't get to

wrapped up in your own business that you don't know what your

competitor is doing.  You may wake up one day to find all your

competitors have left you behind.

As well as being alert to outside developments, you must also be

creative.  Always be on the look out for ways in which you can

improve your own service to your customers.  They pay to keep you

in business - don't neglect them.  Strive to think up new angles,

new lines of products, a new aspect to your service.  Think of

how you can help your customers to overcome any particular

problem he may have.  Show him how he can benefit from your help.

A new twist or special benefit to your service or product, can

mean the difference between earning a living, and earning a

fortune.  Heed these seven secrets.  Remember them well and adapt

them to your own business.

Anyone can earn a living.  The purpose of this book is to show

you the way to make your business into a big earner for you and

your dependents.  It can only do this if you apply what you

learn.  If you do, then you will succeed.

5.       SETTING UP

Having motivated yourself into wanting to start your own

business, the next step is to actually start it!  As soon as you

have your business idea, you can now proceed to make arrangements

for the transition to self-employment.  And it is easy.

SOLE TRADING

In order to prevent this chapter from meandering, I have

described all procedures as they would apply to a sole trader

working from home.  If you are starting business as one member of

a partnership, it is imperative that you seek the advice of a

solicitor.  Ensure that a formal deed of partnership is drawn up,

so avoiding any trouble if there is a disagreement at a later

date.

Similarly, if you are starting as a limited company, it is also

advisable to consult either a solicitor or an accountant.  They

can incorporate your company for you.  Always get professional

advice in these situations.

There are many advantages in being a sole trader, not least that

you have full control over your business, and are entitled to all

of the profits (apart from what the tax man would like), and you

have very little paperwork and red tape.  It is by far the

simplest way to get into business, is the easiest way of running

a business - and is the most common.

As a sole trader you will pay income tax, national insurance

contributions, and possibly VAT as a self-employed person.

NAMING THE BUSINESS

So now you are starting in business as a sole trader, and you are

wondering what that involves.  There are no formalities

whatsoever, when you become a sole trader.  If you decide to

trade under a name other than your own, you will only need to

disclose who is actually running the business.  So when John

Brown begins his business as Pegasus Printing, he would have to

make a declaration of ownership on all:

         letterheads

         written orders for goods or services

         invoices and receipts

         written demands for payment

So his letterhead may look like this:

                        PEGASUS PRINTING

                     (Proprietor:  J. Brown)

                         1, Any Street,

                             Anytown

                            ANYWHERE

                             AN1 0NE

The declaration of ownership - (Proprietor: J. Brown) - is

sometimes placed on its own at the foot of the letterhead purely

for reasons of space and neatness, but you may put it anywhere

you want.  As long as you put it somewhere.

If he were to call himself JOHN BROWN PRINTING, he would still

need to make a declaration of ownership.  But if he were to be

called BROWN, J. BROWN or JOHN BROWN, he would not.

In addition to being on all written material, the declaration

must also be displayed at your premises, or home if you will be

working there.

There is no need to register your new business name with anyone. 

There are only slight restrictions on the use of certain words or

expressions, usually those that give an impression of a

connection with Her Majesty's Government or the local authority. 

If your name includes any of the words below, you will need the

approval of the Secretary of State for Trade and Industry.

1. Words implying national or international pre-eminence -

Such as National, European, British, Scottish, Welsh, and so on.

2. Words implying government backing -

Such as Authority, Board and Council.

3. Words implying business pre-eminence or status -

Such as Association, Institute, Society, and so on.

4. Words implying specific functions -

Such as Assurance, Insurance, Trade, Trust, and so on.

There are further restrictions on words like, Royal, King, Queen,

Majesty, Breeder, Charity and others.  For further information on

names, a free booklet entitled 'Notes For Guidance On Business

Names And Business Ownership' is available from the Registrar of

Companies.

Let me give you a valuable piece of advice here.  Don't use any

of the names above.  When you are starting in business it is a

great idea to keep your paperwork to a bare minimum.  If you

avoid all the needless red tape, you will be free to run a

profitable business.  Unless you have your heart set on being

called The King of British Dog Breeders, avoid the hassle - it's

pointless and counter-productive.

CLASS 2 NATIONAL INSURANCE

When you become self-employed there are special rules that apply

to your national insurance contributions.  You will now have to

pay Class 2 national insurance contributions at a flat rate -

currently $5.25 per week.

For many years the only way to pay national insurance

contributions was by stamps.  This involved buying special stamps

from the post office and sticking them on a card provided by the

DHSS.  It was time-consuming and awkward, and there was always

the danger of losing the card (and the benefits that went with

them).  Thankfully here is now another way to pay - direct debit.

When you are ready to start in business, inform your local DHSS

office.  Go along and explain you are wanting to become

self-employed.  Request Leaflet N1.41 - National Insurance Guide

for the Self-Employed, and Leaflet NP.18 - class 4 NI

Contributions.

Also ask for leaflet N1.255 - which is the leaflet concerning

direct debit payment of national insurance.  In this leaflet is a

form.  Fill in the form and send it to your local DHSS office -

you can get a stamped-addressed envelope from your post office. 

In time you will be sent form CF8.  You should complete this form

as soon as possible, so your change of status can be recorded.

CLASS 4 NATIONAL INSURANCE

A matter that will concern you in about a year is the payment of

Class 4 national insurance contributions.  These are paid, along

with your income tax, if your yearly profits are over the lower

earnings limit - currently $4,750.  You pay a contribution rate

of 6.3% on any profits between this lower earnings limit, and the

upper earnings limit of $15,860.

It doesn't matter how much profit you make above this sum,

because there is a limit to the amount of Class 4 national

insurance contributions you make in a year.  The most you will

pay in Class 4 contributions is $699.93.  This is 6.3% of $11,110

- which is the difference between the lower and upper earnings

limit.  If it all seems very complicated - don't worry.  There is

an easier way of handling it all - as you will soon see.  In the

meantime just read through the leaflet NP.18 from your local DHSS

office, and study it at your leisure.

EXEMPTION FROM PAYING NATIONAL INSURANCE

If you have any reason to believe that your annual income from

self-employment will be less than $2,250 ($43.27) per week, you

can apply for exemption.  If you have bought this book with the

firm intention of following it to the letter, then you won't need

to concern yourself with this section.

Unless you are a man aged 60 or over, or will reach 60 during the

coming tax year, it is hardly worth applying for exemption

because your entitlement to benefits may be affected.  If you

were to be taken ill, you may not be entitled to sickness benefit

and, if you do not pay for a long period, your retirement pension

could be affected.  Leaflet N1.27A, 'People with small earnings

from self-employment', will explain the procedure to follow.  It

is available from your local DHSS office.

For the purpose of Up and Running, we will not concern ourselves

with exemption of Class 2 national insurance contributions.  It

should be your intention to make as much money from your business

as possible, and restricting your thinking in this way will do

you no good whatsoever.

VAT REGISTRATION

As soon as your business has made taxable supplies exceeding

$8,750 during one quarter, or $35,000 during the last four

quarters. you MUST register for VAT.  As soon as you become

registered, you must add VAT to your goods or services.  This is

usually at the standard rate of 17.5% which means that your

prices will go up by 17.5%, while your profit does not, although

some goods and services are either zero-rated or exempt.  The

difference in the two is that zero-registered supplies are

included in your turnover when deciding whether you must

register, while exempt supplies are not.

I recommend that you visit, or phone your local VAT office (in

the telephone book under Customs & Excise) and request the

booklet 'Should I be Registered for VAT?' and also form VAT.1. 

The booklet will briefly explain how VAT works, and will also

give you an insight into the financial penalties for late

registration.  If your taxable supplies exceed the limits above

you MUST register.  Any delay could cost you.

New budget proposals have meant that it is much easier to apply

for voluntary registration.  You don't even have to be yet making

supplies to register for VAT.  You now only have to state your

intention of making supplies in the future.  If you can do this

is means that any VAT that you pay in the course of your business

can be reclaimed.  VAT is not the horror it has been made out to

be - but many people still believe it should be avoided at all

costs.

Because of the fact that some businesses take time to get started

and make supplies, by registering for VAT you would get a refund

for the VAT that you have paid out on business items.  In the

early days this refund will prove to be a handy thing to have. 

So now you have your form VAT1.  Keep it safe for the moment.

Due to the complexities, I recommended you ask for form VAT 1. 

This is an application for registration for VAT.  Fill the form

in as best you can - but don't for the moment guess at any of the

answers, or return the completed form.

INCOME TAX

As soon as you decide to work for yourself you must inform your

local tax inspector.  You will find yours in the Yellow Pages, or

Thompson Local, under 'Inland Revenue'.  If it is not clear from

this who it is, make a telephone call to one of the Inland

Revenue offices and ask.

Do this at the same time as you contact Customs & Excise.  When

you have found out which tax office will deal with you, phone, or

write, and ask for booklet I.R.28.  This is a booklet produced by

the Inland Revenue called 'Starting in Business', and is a

valuable source of reference.  It also contains the form 41G,

which you should complete.  You will inform the tax inspector

using this form, but don't send it to him yet.  If you want the

best start in business, there is a better way of going about it.

For many people it is the thought of having to deal with income

tax and VAT that puts them off self-employment.  In fact it is

very simple to work out, and to record.  If you set about it in

the right way from the very beginning, you will have no problem

with it.  So what is the right way?

YOUR ACCOUNTANT

What accountant, I hear you say?  Well now is the time to find

one.  Throughout your business life, you are going to need all

the help you can get.  When it comes to working out your tax, you

will be glad of the help of an accountant.  Tax matters are very

complex, they frequently change, and they would overwhelm you if

you tried to handle your own.  An accountant is more aware of the

allowable expenses involved with the self-employed, and will

always save you more money than you pay him.  His fees are also

claimed against tax.  An accountant is a vital member of your

professional team.  So how do you go about choosing one?

First of all, put down that big yellow book!  The wrong way to

choose an accountant is by thumbing through the yellow pages and

choosing the first name you see.  When you get to know the other

successful people in your area, ask who they would recommend as

the best accountant for the self-employed.  In matters such as

these, always try to be guided by good recommendations.  The same

goes for solicitors and bank managers.  They are all good at

their job, but some are better at handling matters relating to

the self-employed.  It is these people you should be seeking to

use.

When you have chosen, make an appointment to see him.  Quite

often it will cost you nothing at the time.  When you visit him,

take with you the form 41G (from the booklet I.R.28), form VAT 1,

and your P45 if you have it.  At this point, he will ask you for

some basic details about you and your proposed business.

Once these formalities have been dispensed with, he will ask you

bout your book-keeping arrangements.  He may be able to provide

you with the books you will need, and will tell you the best way

to keep them.  It is essential that you ask your accountant how

to fill your books in, because he will have to make up your tax

return based on your records.  It will save his time (and your

money) if he can understand them easily.

Let him check your forms (or let him fill them in for you).  It

is at this point that he will advise you on registering for VAT. 

He will be able to advise you from the point of view of your

particular business.

Shortly after your visit he will prepare some forms and ask you

to sign them to allow him to act on your behalf in your tax

matters.  Once this has been done, that is it!  You have only to

save every invoice and receipt you get, and write up your books

every week.  It should take you no longer than half-an-hour at a

time.  Any further letters you get regarding tax should be taken,

or sent, to your accountant.  And don't forget - if you have any

problems with your books, ask your accountant.  It really is what

he is there for.

OTHER PROFESSIONAL ADVICE

When you are setting up your business, you will probably need the

assistance of other professional people to help you avoid

problems.  As I have mentioned, you MUST seek the advice of a

solicitor if you are setting up as a partnership or limited

company.  As a sole trader, you won't need the help of a

solicitor in the beginning.  You will however, need a bank

manager, and an insurance broker.

SOLICITOR

As a sole trader setting up a home-operated business, you will

have very little to do in the way of paperwork and red tape.  By

starting business in this way, you have already saved yourself a

lot of time and trouble - and solicitor's fees.

A solicitor is a valuable associate, but only use him when you

need him.  In the beginning you shouldn't have to consult him. 

At a later date, if you decide to change your business structure,

find premises, or take some employee's on, then you will most

definitely have to seek his advice.

BANK MANAGER

When you are setting up your business, shop around the various

banks and find out what facilities are being offered to small

businesses.  Some banks have special facilities for new small

businesses, and may be more responsive to your particular needs. 

In choosing a bank, you should take note of interest rates

charged, how convenient it is for you, what facilities they

offer, and what, if any, support they can give you.

If you have been with your particular bank for a long time, and

you are happy with their service, then you would probably be best

to stick with them.  If you needed a loan, your bank manager

would be familiar with you, and you should have a better chance

as a result.

Whatever you choose to do, it is a good idea to make an

appointment to see the manager when you open your account.  Tell

him about your business, and what you hope to achieve.  Ask him

what services he can offer you, and how to go about applying for

them.  If you keep your bank manager informed of your business,

he will be a more responsive professional advisor.

It is good business to get to know your bank manager from the

very start.  Don't wait until you need help before announcing

yourself by charging in and demanding a $500 overdraft.  That

sort of approach is unlikely to start you off on the right foot.

Once you are familiar with each other, you will be able to feel

at ease with your bank.  This is something that is very important

- and so very rare for most people.  They tend to feel

intimidated by their bank, or the manager, or by the sheer size

of the operation.  Later in this book you will find out how to

approach your bank manager and how to project a good image. 

Don't skim over it - it is very important.

INSURANCE BROKER

You must get your insurance sorted out from the word go.  If you

have a vehicle for your business, then this must be

comprehensively insured, as should all your business machinery. 

The services of a reputable insurance broker are essential.

As well as insuring your business equipment, you must insure

yourself against sickness, theft, bad debt (if you offer credit),

fire, and business interruption.  A good broker will be able to

offer you advice on which insurance you will need for yourself

and your business.

BUSINESS ADVICE

There are many advice centres available to the small businessman

to help with the day to day problems of running a business.  One

of the best is the Small Firms Service, which is run by the

Department of Employment.

The Small Firms Service offers an enquiry service, which can

answer any problem regarding finance, planning, and marketing,

using its vast computerised information facility.

Their signposting service will put you in touch with the people

in authority most able to help you with your particular problem. 

There is a confidential counselling service at your disposal,

where you can talk to experienced business people about problems

which they may also have faced.  These counsellors have been

selected and trained by the Department of Employment, and all

have specialist skills.

The information and signposting services are both free to be used

as often as you wish.  If you need to see a Business Counsellor,

then the first three appointments are free.  After that a

'modest' fee is charged for any further sessions.  To find out

where your nearest Small Firms Centre is, dial 100 and ask for

Freefone Enterprise.  This will put you in touch with your local

centre at no cost to you.

In the early days it is vital that you get the best possible

advice with any problems.  It is no good just crossing your

fingers and hoping to ride them through.  You MUST take positive

action - and fast!

YOUR HOME

When you begin your business, you should consider working from

home.  If this is your choice, you should first seek permission

to use it for business.  If you rent your home, inform your

landlord of your intentions.  The local authorities are very good

in these situations, and will only object to you storing

dangerous chemicals or causing a lot of noise.

If you are buying your home, inform the building society.  They

will usually be as fair as the authorities.  If you aren't sure

about wanting to work from home, you should think of the

advantages and disadvantages.  If you start your business at

home, and run it from there, you will make further considerable

savings.  There are many benefits to running your business from

home, and are well worth looking at.

Costs will be greatly reduced.  In the early days of your

business you will be looking to stay on top of your finances. 

The cost of premises is often prohibitive to a new business, and

very often they are unnecessary.

You will be able to avoid all the costs that go with premises,

which would include rent and rates, as well as insurance.  As a

result of working from home, your travelling costs will be

non-existent.  Not having to travel to work can have many

benefits.  You won't have the problems associated with the

miserable and dangerous icy winters we have.  You can't get

snowed out of your office if you are already in it!

A further benefit becomes evident in your control over the hours

you can work.  As you know, there is no 9 - 5 in your own

business, so being at home in the first place gives you greater

flexibility.  You can work when you choose to do, and if you feel

like putting in an extra hour or two after supper, you don't have

to drive back to your premises.  The chances are you will see a

lot more of your family this way too.

The drawback to working from home is that you need tremendous

self-discipline to make sure you do work.  This can be especially

difficult in the middle of summer, when it is red hot outside,

and your kids are playing on the lawn.  Or if there is a

particular TV programme you wanted to watch that is now on.  You

may also have problems with neighbours, particularly if they are

the typical 'losers' that you should strive to avoid.  Many

neighbours become jealous of your success.  When they see your

new car parked outside, they may start making malicious

complaints about imaginary noise.  If you feel this may be a

problem, you will have to be careful in how you operate.

A final consideration before you start to work from home is

insurance.  Without doubt, the moment you start working from

home, your house insurance policy will become invalid.  Before

you start, approach your insurers and tell them of your business. 

In many cases they will continue your policy as it was, but it

all depends on the kind of business you are doing.  In some cases

they will recommend additional cover depending upon your

activities.

Get your permission, sort out your insurance, and work from home!

I guarantee you will be glad you did.

6.       TESTING THE WATER

If someone leapt over a wall and fell straight into a canal on

the other side, you would probably say it served them right.  You

would argue that they should have checked what was behind it

before jumping over.  Had they done so, they would not have

fallen into the canal.  And, of course, you would be right.  Make

sure you take note of it.  Don't skip this chapter.  Before you

go ahead with your idea, you should put into practice everything

that you read here.  It doesn't matter how good you think your

idea is, it will only work for you if plenty of other people

think so too.  If nobody out there is remotely interested, you

can not run a profitable business.  I will explain the easy, but

effective, way to test the market.  It is up to you to apply it.

COMPETITORS

Before you can hope to start your business, it is essential that

you find out what everyone else is doing.  It is unlikely that

your idea is completely original, so it is fair to assume that

there will be many other people out there doing the same thing. 

In order to give your idea an edge, you will have to find out

what service is being offered by the competition.

You will have to find out as much as you can about their

competition.  You should find out their strengths and their

weaknesses and use them to your advantage.  If you are going to

start a typing agency, then you must look up all the local typing

agencies in the yellow pages.  Make a note of them all, and then

write to them.  Ask for some samples of their work, and a current

price list.  Find out what other services they offer, and the

quality of their work.

Have them all type up a one page document for you.  Say you want

it back as soon as possible.  By doing this you will be able to

compare their speed, neatness, presentation, and also find out if

they have any special trimmings.  One firm might just send the

document back with a hastily typed note to say who it is from. 

Another firm might enclose a professionally printed compliment

slip with a thank you message.  From this you can find out what

you have to compete with.

The above is an example, but you can see the method there.  Apply

it to your own potential business.  Don't just leave it at that

though.  Get to know more about your competitors.  Ask some of

their customers for their opinions.  Always be aware of what is

happening in your field.  One agency might begin using a

word-processor, hence improving the quality of their work. 

Another might offer a discount for larger volumes of work. 

Ensure that you are never in the dark about what they are doing.

Look closely at some of the strengths of your competitors.  Can

you possibly compete with them for quality, speed, delivery,

volume of work, and reliability?  What would it involve in order

to produce work on a par with theirs?  Try and copy as many of

their strengths as possible, and try and take advantage of their

weaknesses.

If there is a service that they can't provide, find out why. 

Ring them up and ask for this service.  when they tell you they

don't do it, ask them why.  It may be that they haven't got the

skills or the facilities to do it.  If this is the case, here is

a chance for you to get one up on them.  However, it may be

because there is no demand for the service.  Perhaps they offered

this service in the past, but it lost them money because nobody

was interested.  In this case you will know to avoid it when you

start up.

Another consideration is how well your competitors are doing. 

Try and find out if they are doing any better now than when they

started.  In other words, is there a future in this business?  A

particular firm may start to do worse because another firm is

offering a better service, and taking their customers.  On the

other hand, they may all be doing worse because the demand for

the service is dwindling.  In this case it would be wise to think

again.

Always try to enter a growing market.  Some services will always

be wanted (painters and decorators, plumbers, and so on), but

some products and services tend to come and go with the latest

trends.  Don't make the mistake of offering a purely seasonal

product, or service, unless you can generate enough money to make

it worth it.  In other words, don't confine yourself to just

making artificial Christmas trees!

CUSTOMERS

In order to sell your product, or service, you have first to find

a customer who is interested in it.  In the case of your typing

agency, you would be looking for any individual, or company, who

hasn't the time to type up his own documents; or doesn't have the

equipment; or has too many to do himself; or can't do them as

cheaply himself.  Obviously, you can't handle too many in the

beginning, so you would probably aim to do a certain service. 

You may concentrate on typing manuscripts for writers, or

business documents, or club newsletters, or whatever.  When you

choose your particular service, you have then become specialist. 

In other words, you are specializing in a particular type of

document, or customer.  If you decide to provide a service to

business, then you can immediately assess your market.

By specializing in a few, or one, service (or product), you can

target your advertisements to greater effect.  You define your

market (that is, your potential customers), and you can improve

your service through the regular practice of doing it every day. 

And by knowing who your potential customer is, you can then go on

to find him.

Once you decide to offer a service to businesses, you can direct

your market research at them.  You could do a spot of telephone

canvassing.  Ring up local firms and ask them if they would be

interested in your service.  Now that you have defined your

customer, don't restrict yourself to being just another typing

agency.  Extend your market research further by asking them how

much importance they place on certain aspects of a service such

as yours.  In this way, you are defining your service further.  A

business may place greater importance on meeting deadlines.  They

may place speed and accuracy at the top of the list.  You will

see how this form of market research will help you find the edge

shortly.

GETTING AN 'EDGE'

Now you have discovered who your competitors and your customers

are, you are in a much better position to design your

money-making machine.  In the chapter on selling, you will find

out about the magic of USP.  Any successful advertising executive

will tell you how important this is.  Right now, you must use a

little USP to give you an edge over your competitors.

Well, what is USP?  It is a name given to something you have,

that nobody else does!  It stands for 'Unique Selling

Proposition', and it is the selling point for your service.  In

the case of the typing agency, you could examine the response you

got to your telephone canvassing.  You could get your edge from

the fact that most of your potential customers place importance

on meeting a deadline.  As a result of this you could announce

yourself as:

                       LIGHTENING' TYPIN'.

                TOP QUALITY WORK. ALWAYS ON TIME.

You would be able to use your speed of typing and delivery as

your unique selling proposition - no other agency offers such a

service.  You could turn this quality into a slogan, which could

be printed on your letterheads.  In time you may become known by

your slogan.  When you achieve this distinction, you have really

arrived!

There are many ways to get an edge.  You could undercut the

prices of your competitors.  But if you choose this method, make

sure you can afford to do it.  Also, don't let your standards

slip by producing sloppy work.  You must always reassure your

customer that he is getting value for money.  Maintain your

quality.

If you are going to undercut your competitors, make sure that

your work is of equal, or not better, quality than theirs. 

Remember, if they take your low prices as an invitation to a

price war, they could drop their prices to meet yours.  If your

product, or service, is of lower quality than theirs, what will

you do then?  If you drop your price again, it could soon get to

the stage where you are both making a loss.  When this happens,

you will find that your competitor will have more money to waste

than you, and very soon you will be out of business.

If you give good value for money, there is no reason to fear

competing with someone at the same price.  Don't make the mistake

of offering USP that you can't fulfil.  If you base your

reputation on always being on time, you will lose all credibility

if you fail to do so.  Don't promise something you can't give.

In the case of a product, any small change to the design can be

enough to give you a USP.  Remember, always put yourself in the

customer's position.  Find out what he would like, and try to

provide it.

Costing your work is a very important consideration.  At this

stage it is usually enough to find out what the 'going rate' is

for your competitors' products, and set yours at a similar

height.

If you intend to improve upon what they are offering, you should

read the section on pricing your work.  You will find out the

best way to price your product, or service.  This is always the

top price that the public are willing to pay for your particular

idea.  It will ensure that you don't end up losing out on your

new product, or service, as can so often happen.  Quite often,

there is a right price.  There are also two wrong prices -

usually above and below this right price.  The knack is to hit

the right price more often.

After you have conducted your market research, you will have a

much better idea of how to approach your business idea.  You will

be aware of your competition and the ways to improve upon what

they are already offering.  You will also be aware of the size of

the market, and whether or not you should specialize within that

market.

Later in this book you will find out more about pricing your

work, image, advertising, and selling - all of which are crucial

when deciding exactly how you are going to adapt your product, or

service.

7.       RAISING MONEY

As you have found out, your success in your own business is not

guaranteed by having enough money.  If you already have plenty of

money, well that's great!  But no amount of money will make you a

success in a job not suited to you.  Once you have decided on

your business idea, and are sure you can make a dedicated effort,

then you must start to assess your financial requirements.

Many home businesses can be started with the minimum of capital. 

There are countless opportunities for people wanting to work from

home.  We publish a number of books ourselves, giving information

on how to start a business with little capital.

If you look through the pages of 'The Opportunist', or 'Exchange

and Mart', you will find business opportunities galore.  If you

can avoid the dishonest operators who sometimes rear their ugly

heads, then you can always find a genuine business idea.  Being

able to spot the villains is never easy, but fortunately some

sanity is now prevalent.  Spearheaded by Glyn Lewis, proprietor

of Shareserv and publisher of 'The Opportunist', honest operators

are combining in a united effort to expose these bad apples as

they appear.

ASSESSING YOUR FINANCIAL NEEDS

The first step in finding out how much you will need is to find

out how much you've got.  Make a note of all your available

money, wherever it may come from - e.g. redundancy money,

part-time job, savings, partner's earnings.  When you have a

rough idea of all the money you can find, you must then try and

work out how much money your business will need.

The best way to assess this is by splitting your business costs

into two categories.  These are setting-up costs, and running

costs.  Try and be as accurate as you possibly can when

estimating these costs.

                        SETTING-UP COSTS

Equipment for use in the business (computer, word processor,

typewriter, telephone, tools, vehicles, and so on.)

Printing requirements (letterheads, business cards.)

Advertising and Marketing (newspaper ads, market research.)

Raw materials (paper, card, paint and so on.)

Insurance.

All other expenses that figure in starting up your business (any

professional fees requiring early payment, information books,

account books and so on.)

                          RUNNING COSTS

Regular payments that you have to meet, such as:

Rent and rates.

Gas and electricity.

Further regular advertising.

Repairs to equipment.

Bank charges.

Telephone charges.

Stationery, and regular equipment costs (typewriter/printer

ribbons, floppy discs, notepads and so on).

Production and delivery costs (raw materials for making your

product, and postage and packing costs).

NI Contributions.

Travelling costs.

Personal expenses.

As soon as you have a figure for each of these, total them all up

to a period one month after you expect to start earning from your

business.  So if you expect to be earning a living from your

business in about three months from now, then add up all your

costs over a four month period.  If the amount of money you

expect to have at your disposal exceeds this amount, then you

shouldn't need to borrow any more money.  If your costs amount to

more than your capital, then you will have to find a source of

further financial assistance.

Being a new business you are already at a disadvantage in trying

to raise some money, as you have no track record.  Throughout

this book I have urged you to avoid as much unnecessary trouble

as you can.  I will urge you now, to do the same when setting up.

Unless your idea requires a large capital outlay, I would advise

you NOT to borrow.   The reason for this is that banks require

security - and they are not shy of calling it in if you default

on a loan.  Make no mistake - they WILL take your home.  The old

saying 'Business is business' takes on a decidedly bitter flavour

when the bailiff has come to evict you.

As I have said, there are many businesses that you start from

home for very little capital outlay, and these are the types of

business you should really be looking at.  There is really no

need to saddle yourself with a large loan from the beginning.  If

you are going into a manufacturing business, then you will

probably have to spend heavily, but if not - don't risk it.

If you are still intent on raising money then you must ensure you

set about it in the right way.  If you are approaching any kind

of lender, be it a bank or investor, you must first of all

convince them that you are worth the money.  This involves making

a presentation.  Without this you will never raise the money. 

The first part of your presentation is to write a business plan.

YOUR BUSINESS PLAN

Regardless of how much money you are hoping to borrow, you still

have to prepare a business plan.  Basically this means you have

to write a fictional account of how a non-existent business will

perform over a given period of time, based on educated guesses!

This is particularly true in your case, where you have not yet

started your business but have still to convince others that it

will work (and that you won't abscond to Rio!).  This is not

always easy.  But there are right ways to do it - and there are

wrong ways.  It is our intention to do it right.

Your market research results will come in very useful here.  By

finding out the sort of response your product or service would be

likely to get, you can predict fairly accurately the amount of

business you should be doing.  This is where you will be glad you

took the time to test the market.

For many people, the actual thought of putting together a

businessplan is enough to send them into a wild panic.  There is

no need to be worried at the thought of preparing a business

plan.  It won't take long and besides - you already have one!

When you decided to set up in business with your idea, you had a

plan in your mind of the money you would like to earn, and the

ways in which you might achieve it.  You have been encouraged, in

previous chapters, to always have a goal.  If you have followed

that advice, then you are halfway to a good business plan. 

Basically, your business plan is your goal committed to paper.

You may have heard of the various ways to put together a plan. 

Well I am going to recommend a way that should guarantee you

success!  Obviously, if you have no capital, then you are

unlikely to be able to raise a great deal of money, but if your

idea is sound, this method will ensure success.

2 PLAN METHOD

As a sole trader perhaps looking for only enough to keep you

going for a few months, or to set you up with vital equipment,

you will need a relatively simple plan.  Don't be misled here, by

simple I mean concise.  It should say a lot in a few words. 

Brief and to the point - with no waffling.

You will be responsible for the facts and figures of your plan. 

It is up to you to be as accurate as possible.  I can't stress

this enough.  Don't leave anything to pure guesswork.  If you are

in doubt - seek advice from those in the best position to give

it.

If you have been following this book to the letter, you will

already have a head start.  You will have got to know your bank

manager and explained your ideas when you opened your account. 

If you have not yet opened an account - do so now!  Involve your

bank manager before you start asking him for money.

You already know that a goal is vital to your success.  The

business plan is your goal committed to paper, along with details

of how you intend to achieve it.  Because of this, I am going to

ask you to write a business plan even if you don't intend to

borrow money.  If you are trying to raise cash, you will write

two business plans.  The first one is for the lender, and will be

very slightly under-estimated.  The second one will be for you. 

This one will have higher goals for you to reach.  This is the

plan that you must aim to follow as closely as possible.  It will

help to keep you going in the right direction.

Your lender will be concerned with the way your business is

developing for as long as you owe him money.  When you submit a

business plan, it will contain information about yourself and

your business idea.  This is important to your lender.  He needs

to have some idea of how responsible you are, and how good your

idea is.  But more importantly, he will want to know how much

profit you expect to make.

You will have to submit a forecast of how much money you hope to

make, and show that you can pay back the loan.  If you are

over-generous in your estimate of profits, then you are not going

to look very good when your business fails to make them.  By

under-estimating the profits, you will be able to reach them more

easily, and very likely surpass them.  When this happens, you

will look very good indeed.  Remember, even if you make a yearly

profit of $100,000, it will still look bad if you told your bank

manager that you expected to make $250,000.

If you expect to make $20,000 in your first year, tell the bank

manager to expect a profit of $15,000.  It will reflect very well

on you when you actually make $20,000.  He must presume that your

extra profit is due to your business skill and expertise, and you

will have a much better chance of borrowing in the future, should

you need to expand.  So now let's set about the winning way to

prepare a business plan.

CONTENTS OF THE PLAN

1.       YOURSELF.  Write a brief description of yourself - this

should include your work experience, professional qualifications

if any, and how these might benefit your business.  If you have

any skills, mention them.  In short, anything about you that

might be impressive, or that can relate to your business, should

be included.

2.       THE BUSINESS.  Briefly describe your intended business. 

Give the data you hope to start.  If you are making something,

outline the process and the various stages.  Here you must try to

sell your idea to the lender.  Tell him what is good about your

business, and what sets it apart from the competition.  Reassure

him that you have plenty of ideas for the future, but don't go

into excessive detail about anything.  Just show him that you

know what you are talking about.

3.       MARKETING.  You should be familiar with this by now. 

For this section, briefly describe the market.  How big is it?

Does it have future growth potential?  Describe who your

potential customers are, and how you intend to reach them.  What

demand is there for your product/service?  Mention your

competitors, and how you intend to challenge them.  Explain your

methods of advertising, promotion, and selling, and how you will

price your product/service.

4.       OPERATION.  Here you should briefly describe your

location (home, premises), and what facilities you will be using

for your product/service (equipment needed to do your business). 

Mention where you will obtain your raw materials or supplies, and

what these will be.

5.       OBJECTIVES.  This is where you tell him what you hope to

achieve.  Explain your short-term, and long-term, goals.  State

where you expect to be in a year's time.

6.       FINANCE.  This is where you outline how much money you

need to borrow.  I recommend that you not borrow unless it is

absolutely necessary.  However if you re to borrow - ask for more

than you need.  It is better to have money and not need it, than

to need money and not have it.  You will also be in a better

position to make a success of things if you don't run out of

money.

You worked out how much you were likely to need earlier on.  Now

add 25% to that, and this is what you should be asking for.  Also

state how much you are putting up yourself (which should be as

much as what you are asking for).  Say when you will need the

money, and (if you are approaching a bank) in what form -

overdraft, long-term loan, and so on.

7.       SECURITY.  This is likely to be your house, car,

equipment, life-insurance policy, or a guarantee from someone

else (a guarantor) who will have to settle the debt should you be

unable to.

If you are a little unsure of how to go about finding some of the

information required - perhaps you aren't sure how to handle your

advertising or costing - just read on.  By the time you've

finished this book, you should be well prepared for any

challenge.

8.       CASH-FLOW FORECAST.  If you have done the previous

sections properly, you will be ready to back it all up with a

cash flow forecast.  This is a forecast of all the money flowing

in and out of the business over a given period - in this case, 12

months.  This will also show the repayments you intend to make to

the lender, as proof that you can afford it.

A cash flow forecast is meant to show you what is coming in to

the business, and what is going out.  The idea is to avoid the

possibility of all your money going out without any coming in. 

This can happen when you have a lot of slow-payers, and if it

gets bad enough you could find yourself out of business.  Even if

you are owed $5,000, you could still go out of business if you

need $500 to keep going.  A cash flow forecast will help you keep

a steady flow, and warn you if there is likely to be a lot of

bills in one month, which have to be paid.

In some respects, a cash-flow forecast is worthless. In the case

of a new business, it is mostly guesswork.  It is intended to

reassure the lender that you can afford to repay him.  Despite

the fact that you have no proof that you will earn $xxx in your

first year, you can base your estimate on your market research. 

This will almost always be acceptable.

A cash flow forecast is best done using one of the special forms

provided by the bank.  Whichever bank you are hoping to borrow

from, pop in to their local branch and ask for a number of cash

flow forecast sheets.  Make sure you get about ten!  This gives

you plenty of margin for error.  This is especially useful when

you have forgotten to enter the electricity costs for the year.

As well as warning you of any possible money problems, a cash

flow forecast can show you when things are likely to be good.  If

you pinpoint a particular month when you have a lot of money

coming in to the business, you can take advantage of this to buy

more stock at a discount price, or pay off your loan.

The most important thing to remember with a cash flow forecast is

to include every item of expenditure.  Remember, if you ignore a

small item that may cost you $5 per week, you will find that

despite all your planning, you are still $260 down over the year.

Little things add up over the year.  Look at everything -

insurance, personal expenditure, telephone, accountant, bank

charges, TV licence (this isn't a business expense, but you

should allow for it in your personal expenditure), postage, and

so on.  You will find quite a lot of items have already been

entered on the cash flow forecast when you get it.  There is

plenty of room to write in any further items you may remember.

Before you write in your sales, subtract 25% from your estimate. 

This is the 'under estimate' that I mentioned earlier.  When you

are preparing the cash flow forecast for yourself, you should add

25% to your projected sales - hence giving yourself a higher

target to reach.

Before you complete your cash flow forecast, add a further

generous sum of $200 to the estimate given for your accountant's

fees.  You will find out why shortly.  Your next step, having

completed your business plan details, is to roughly type them up. 

This is not the document you will be submitting to the bank. 

Instead you will use this to obtain an independent assessment of

your chances.

IS IT WORTH IT?

It is important to have your plan assessed before you approach a

lender.  If an independent adviser thinks you have no chance of

success, it will pay you to forget about a loan.  You may think

this is a defeatist attitude, but it is actually good common

sense.  Any loan application will receive one of two responses -

a definite yes, or a resounding no.  There are very few

borderline decisions in money lending.  It is usually quite easy

to distinguish between a good chance, and no chance.

As a new business you will generally find it impossible to borrow

money without security.  A bank may even require capital for a

small overdraft!  If this is you, then forget about a bank loan. 

You may, if you have a generous bank manager, be able to have an

overdraft, but don't rely upon it.

By the same token, it is usually quite easy to raise money if you

are willing to put up some kind of security to cover the amount. 

In this case, the next step is to take your plan, and cash flow

forecast, to your local Small Firms Service.

The best way to go about this is to contact the Small Firms

Service by telephone (Dial 100 and ask for Freefone Enterprise). 

Explain to them that you are setting up a new business, and that

you would like some advice on how to raise finance.  Tell them

that you have written a rough draft of your business plan and

cash flow forecast, and you would like to discuss the matter with

a counsellor.  They will arrange an appointment for you.

When you go to see the counsellor, take a pad and pen along with

your business plan and forecast.  This is so you can take notes

of any good advice you can benefit from.  Ask the counsellor to

give you a honest assessment of your chances.  Explain to the

counsellor that if he thinks you have a reasonable chance of

success then you intend to let your accountant write up and

present your plan and forecast.  From this he will see that you

are serious in your intentions, and will give you an honest

appraisal.

If your counsellor thinks you have very little chance - forget

it.  In the end it won't be worth it to try and go around every

bank.  You will just end up frustrated and depressed.  Instead

look for money by selling some personal items, or ask a member of

your family for help.  Have a look at some of the suggestions in

the next chapter.  If he thinks you do have a chance, then

proceed immediately to your accountant.

THE PROPER PRESENTATION

If you have been given the go-ahead from your business

counsellor, take your plan and cash flow forecast to your

accountant (arrange an appointment first), and ask him for a

second opinion of your chances.  If he says OK, then ask him to

prepare the plan for you.  This way you will have the ultimate

presentation for your business plan and cash flow forecast. 

Always use your professional advisors to their best effect.

Your accountant will very likely want to be there at your meeting

with the bank manager, and it will improve your chances if he is. 

He will be able to offer first hand details about the layout of

the plan.  It also shows a serious attitude to your business

financing.

Remember to be fully conversant with the facts in your plan and

forecast.  It is no good having a professionally presented plan

if you sound insure of the details.  You may be confident that

your business will be a success.  This will make no difference

unless you convey this confidence to the lender.  Let him know of

the outstanding points of your business idea, and how you can

make a success of it.

Good appearance and presentation is vital.  You made the effort

with your plan.  You also involved your accountant at the

meeting.  Don't let all this good work go to waste by showing up

at the meeting in jeans and a leather jacket!  You must look as

if you are worth the money you are asking for.  Care taken of

your appearance shows a sense of pride in oneself.  It will

reflect in the attitude of others.  Once again, it is all down to

self respect.  If you show yourself some respect, others will do

the same.  Never forget this.

Even if you know the bank manager, and are familiar with him,

don't insult him by dressing in a sloppy fashion.  Don't make the

mistake of thinking, 'Well, he sees me in my ordinary clothes

every day, why bother dressing up now?'  It isn't every day that

you want to borrow his money!  Look as if you have gone to some

effort.

This preparation applies to any application to borrow money, not

just to the bank manager.  This book can't guarantee you will

raise money.  As I said before, everybody has different

circumstances and I can only generalise.  What I can promise is

that if you have even a remote chance of borrowing, the

presentation given in this chapter will greatly increase that

chance.

8.       ALL ABOUT MONEY

Too many people confuse cash with profits.  The reason is

probably because a large number of small traders deal only in

cash.  They buy their goods for cash and sell them for cash.  The

use the money they receive to buy more stock and so the cycle

continues.

If there are no overheads or other expenses, then cash and profit

do become interchangeable.  However, in most cases, there are

other expenses to consider, there is the matter of

customer/supplier credit, bulk purchases, slow payers ... And

very soon, the simple case becomes complicated.

I always remember the difference between 'cash' and 'profits' in

a slightly unusual way.  All organisations - no matter how large

or small - should have underlying aims or objectives.  In the

absence of any other high blown ambitions, the defaults would

probably be

* survival and

* growth

No one wants to be stuck in a rut for a long time, so growth is

vital for enthusiasm, drive and freshness.  And for growth you

need profits.  If you are not making any profits, you will not

have the spare capacity to expand your operations, to take on

more staff, move into larger premises, or enter new markets.

But, before you can grow, you must survive.  Particularly during

the first twelve to eighteen months, when your customers are

taking credit - but your suppliers are not offering the same

facilities to you.  And for survival you need cash.

We cannot stress too often that a ready supply of cash will be

vital to your business survival.  And it is also worth mentioning

again the 'good profit/poor cash flow' paradox again.  You can

become strapped for cash even though business is booming, because

all your available capital is tied up in financing the increased

levels of stock and debtors that your business needs.

Most aspects of business become simpler to understand and to

control if time and thought is invested in planning. 

Unfortunately, the small business owner normally has a staff of

one, and this individual has to be, in turn, the managing

director, sales manager, production manager, accountant, etc. 

When is he going to have time to plan?  Another point is this -

you don't have to plan.  There are thousands of small businesses

still operating today to the same standards, aims and ambitions

as when they started 40 years ago; and not one of them has ever

considered, let alone accomplished, a cash plan.  On the other

hand, a large number of those that have gone to the wall would

still be in business if they had spared some time for planning

ahead.  More importantly, none of these 'stale' businesses will

ever be anything different.

So the first step - as with other pursuits - is wanting to do it. 

What plans are we talking about here?  We are simply aiming at

survival at the moment, so let us consider a cash plan.  The most

popular - and useful device - is called a Cash Flow Forecast.

This is a guestimate of your income and expenditure (in cash

terms) over a period of time.  Most advisors recommend that a

period of six months or a year would be the most suitable time

span.  You can look further into the future although your

estimates of sales and expenses are likely to be too inaccurate

for detailed planning.  There is not a lot of point in doing the

exercise if the figures used are not justifiable and reasonable. 

Therefore, a vital point to bear in mind with the CFF is to take

your time.  Do not rush it, or do it on the back of an old menu. 

It really will repay some scrupulous research and sound

reasoning.  Although individual businesses will vary in the

details used, it is always instructive to see how others complete

the task.

I have shown a worked example to follow.

Investigating the customer.  This process may not be worthwhile

for all businesses, but if you are preparing to offer a

substantial sale to a new customer, or you can see the potential

for steady, repeat business, it would be worth while to check

them out first.

* Ask them for a bank reference.

* Ask for trade references.  We have all been asked this question

by potential suppliers, and there is no stigma attached.

* Ask to see their latest accounts.

* visit their business premises and meet the directors/owners.

Setting Payment Terms.  There can be an almost limitless number

of different payment terms, ranging from cash with order (cwo) to

sixty days credit.  Although you may try and impose your own

terms, you will probably find that you are at the mercy of

industry custom and practice.

                           Case Study

Elaine and John Barnes are considering starting their own

business selling some handicrafts they have designed.  The

production of the items will be using casual labour, home

workers, etc.  They expect to sell through craft shops with a

retail price of $40 apiece, although they will only receive about

$25.  The cost of raw material is $6 per unit, and labour costs

will add a further $5.

They have allowed some seasonal fluctuations (Easter, Christmas,

etc), and they hope to expand their operations after about 6

months.  They will have to buy raw material in advance, on thirty

days credit; workers will be paid on completion.  They expect to

have to allow up to 60 days credit to their customers.

                          Jan    Feb    Mar    Apr    May    Jun

_________________________________________________________________

Opening Balance                  2685   1555   1680   2120   1670

Sales                       -      -     950    950    675    675

Enterprise Allowance       400    320    320    400    320    320

Capital                   4000

_________________________________________________________________

Total Receipts            4400    320   1270   1350    995    995

_________________________________________________________________

Materials                  190    190    135    135    135    250

Labour                     175    175    125    125    125    210

Equipment                  600                                400

Stationery                  50            50            50

Packaging                   50            50            50

Heating                            35     35            35     35

Phone                             300                  300

Rent/Rates                                                    800

Assistant                                                     400

Car                         50    150    150     50    150     40

Drawings                   600    600    600    600    600    600

_________________________________________________________________

Total Payments            1715   1450   1145    910   1445   2745

_________________________________________________________________

Closing Balance           2685   1555   1680   2120   1670   (80)

Some businesses offer cash discounts for early payment, but there

are a number of drawbacks to a potentially attractive scheme.  In

practice you might well find that your customers will take the

discount, whether they are entitled to it or not.  And the amount

they have saved is normally hardly worth the clerical effort to

reclaim it, since your discount was probably only 1-2% anyway. 

If they are long-standing customers, you could try leaving the

unpaid amount of their monthly statement, but this will only lead

to ill-will and aggravation.

An alternative approach is to penalize late payment.  This is

perfectly legal if your terms are established in advance, and

printed on the invoice.  But it sometimes has the opposite effect

from that intended, and you will often find your bill put at the

bottom of the stack.  If you make the penalty very heavy, you

will probably defer people from giving you repeat business.  On

balance, it is not worth the hassle.

Prompt invoicing.  It is vital that you give the impression of

keeping tight credit control.  Get into the habit of preparing

the invoice at the same time as the goods.  At the very latest,

send it off next day.  Otherwise, the impression gained by your

customers is that you are not really bothered about receiving

payment.

Using the telephone.  It can sometimes be more cost-effective to

chase payment by telephone, rather than the usual sequence of

formal letters.  It is important to cover the following points:

* Be positive.  You are only collecting money which is overdue,

for goods/services which have been delivered without any

indication of non-acceptance from the buyer.

* Be prepared.  Your positive approach can be destroyed if there

are pertinent questions you cannot answer.  You should have all

the relevant paperwork in front of you:

- buyer's name - order number - invoice number

- description of goods/services - delivery date

- invoice date - invoice value.

* Speak to someone who can take positive action, since the object

of the call is to gain payment earlier than might have been.  Try

and extract a promise of payment.

* Note the name and position of the person you speak to. 

* Promises of payment should be specific and not vague.

Your Customers.  Too many businesses have fallen by the wayside

because of poor selling.  By that I do not mean that they did not

sell enough, but that the sold to poor customers - in both senses

of the word.  Ideally, your customer will pay you cash in

advance.  In mail order businesses this is common place.  If you

are running a shop, you will expect to get paid at the same time

as you part with the goods.  However, in almost all retail

stores, it is possible to acquire goods on credit.  And in the

vast majority of industries, particularly service, your customers

will receive credit - normally up to four weeks.

Dealing with large companies.  Most of the people reading this

will be running very small businesses.  In this scenario, the

chance of a large, repeatable contract with a major company seems

too good to miss.  Such a contract could become your ticket to

success.  However, you must beware of the dangers in dealing with

large organizations, because they are painfully slow at settling

their bills.

There has been a great deal of debate on this subject recently -

right up to parliamentary level.  A check on payments made by a

number of well known companies showed that the average time

between invoice and payment varied from 5 to 12 weeks.  Most

large companies do not follow this policy out of choice; it is

often the natural outcome of ponderance and inflexible purchasing

systems, and it is possible to find a way through the maze.

* Your first aim is to get your invoice onto the Purchase Ledger

before it closes for the month.  In many cases, the accounting

period is 'closed' some time before the actual end of the month. 

You need to find out what this cut-off date is.

* Your invoices need to be accurate and promptly sent.  Do not

wait until several have accumulated.  And it is also worth

spending the extra pennies for a first class delivery.

* Your invoices need to be identifiable in the buyer's company. 

They should therefore carry the correct Order Number, or purchase

reference, and annotated with the buyer's name.

* Date the invoice the same as the date the goods were despatched

(or services completed).

Most of the problem areas with suppliers are merely the mirror

image of the way you deal with your customers.  If you are tight

for cash, you may well find yourself chasing your customers for

money at the same time as giving your suppliers the run around!

However, this is a very steep, slippery slope and you should take

care that what you saw as a temporary short-fall does not turn

into a long-term problem.  If you go down with a lot of unpaid

bills, then you may well be condemning other small businesses to

the same fate.

However, you can draw some comfort from the knowledge that all

small businesses go through a phase of having to be very tight

with cash, and to delay payment.  You could decide only to pay

those bills you are asked for.  In other words, forget about the

routine bills, and only take action when the Reminder comes.  Or

you could introduce a schedule in which you only settle accounts

on one specific day a month.

Working Capital.   Any business, no matter the size, needs

capital.  Your Balance Sheet shows where your money has come from

(liabilities) and how it is being used (assets).  The liabilities

constitute the source of funds (profits to shareholders, credit

from suppliers, loans etc).  Some assets will be 'fixed'

(buildings, vehicles, computer equipment etc), while the rest are

called 'current assets'.  They can be thought of as cash in

varying degrees of liquidity from stocks of materials and

finished goods, debtors (money owed from sales already made), and

cash itself.  (See the example balance sheet on the next page).

                           Case Study

                          Balance Sheet

               XYZ Co Ltd (as at 31st March 1988)

Assets

Fixed Assets

         Computers             60000

         Vehicles               8000                24000

                               __________________________

Current Assets

         Stock                  3459

         Debtors                2386

         Cash                   1621       7466

                               ________________

Less Current Liabilities

         Creditors              2856

         Bank Loan              1500       4356      3110

                               __________________________

Net Assets                                                27110

                                                          _____

Sources of Funds

Capital                                   20000

Profit                                     5110

Long-term loans                            2000

                                          _____________________

Capital Employed                                          27110

                                                          _____

Chasing Money.  A step-by-step guide to chasing money.

* Make sure the customer knows your credit terms (print them on

your invoices)

* Make sure that all the invoice is correct (check all the

details, as almost any error can be used to hold up payment)

* After the payment date has passed, send a statement of account,

with a brief, polite reminder

* If there is no reply within 7 days, send another letter by

recorded delivery

* If there is still no reply within a further 7 days, telephone

and ask why payment has been withheld.  It may not be a cash

problem, but an error that you have overlooked on the invoice

* Use the phone call to find out whether the customer only pays

bills on certain days of the week/month

* Keep ringing - particularly just before the customer's payment

days.  Try and extract a promise of payment

* Keep up the pressure.  Do not let the matter drop for a few

weeks - otherwise you will be back at square one.  If you suspect

that delaying tactics are being used try speaking to the managing

director, rather than the accountant.  Or try pretending to be

someone else, until you have the right person on the other end of

the phone

* Try different times of the day; different days of the week.  If

someone says they will case it tell them you will hold while they

do so

* If the customer says the 'cheque is in the post', ask for the

date it was posted, the amount and the cheque number

* If the cheque still does not arrive, go around in person if

possible.  Cash the cheque as soon as possible, before it can be

stopped

* If all these steps fail, send a formal letter, threatening to

take either legal action or to start bankruptcy proceedings if

the account is not settled within 7 days.

At the same time, you could consider using a debt collecting

agency, or an organisation like the Credit Protection

Association.  This can have a rapid effect since virtually all

businesses rely on credit, and a bad report from the CPA can

destroy their credit rating.

It is also worth considering using the County Court Small Claims

procedure for debts under $500.  This is easy and cheap to

operate, and the County Court will guide you through the

necessary action, or send you an explanatory booklet.

9.       THE WINNING IMAGE

When you are finally ready to start your new business, spend

plenty of time creating your image.  Care taken here, no matter

how long it takes, will repay you handsomely.  Don't rush into

anything and hope it will all sort itself out.  The chances are,

it won't.

But what do I mean by image?  Well your image is not the way you

see yourself.  Nor is it the way you see your product.  It is the

way that others see you, and your product.  Your image is decided

completely by how the other person sees you.

Within the category of image comes everything from the name of

your business, to the packaging of your product.  It also

includes yourself, your attitude, and your personal appearance. 

You will now discover the way to create a winning image for you

and your business.

WHY IS A GOOD IMAGE IMPORTANT?

In order to get customers interested in you and your product, it

is essential that you appeal to them and their tastes.  Once you

have established a reputation for service, quality, value for

money, or whatever, you will then begin to gain a regular supply

of customers.

They will then come back to you for more of the same.  Your image

will ensure the steady growth of your business.  But many new

businessmen seem to ignore this vital part of setting up.  They

disregard creating a good image.  As a result, their business

never 'takes off'.

THE BUSINESS NAME

As a new business, the last thing you want to do is give a

negative impression.  When you start out, nobody will be aware of

your product or service.  Therefore it is important that you

don't upset anyone with your name.  Creating a negative feeling

among your potential customers is the kiss of death for your new

business.

In choosing a name, you should strive to give people a positive

impression of your business.  Avoid initials if you can.  These

are usually met with suspicion.  Using initials gives the

impression that you are hiding something, or are trying to be

clever.  Try and put happy thoughts inside the heads of

prospective customers.  At the very least, be neutral.  But avoid

stirring up any bad feeling if you can.

When you have a few names, ask a few of your friends for their

opinions on them.  Find out what the names suggest to them.  Does

it reinforce the sort of image you are hoping to create?  In the

beginning it is useful if your name conjures up a particular

feeling or impression.  If it is memorable, you will ensure that

your name is remembered.  Even better if it reminds you of the

line of business you are in.

WHAT IMAGE DO I WANT?

This is not as simple as it may sound.  This will depend upon

what your product or service is.  In your market research you

will have found the strengths of your competitors (and their

weaknesses).  Perhaps you want to show that you can compete with

them at their strengths, or underline your superiority where they

are weak.  This could be same day delivery, top quality goods,

and so on.

Whatever you decide, it is important that you make it clear, and

that you live up to your boasts.  A reputation is not earned

overnight, and you must make sure you don't try to give

everything at once.  Make your claim, and work at fulfilling it. 

Always remember though, it is what the other person thinks of you

that matters.

YOUR PRODUCT

Despite being told not to, we do judge a book by its cover.  We

tend to buy a car more for its looks than what is under the

bonnet.  How you present your product will influence people. 

This is especially true of the name of your product.  In choosing

a name for your product, follow the same principle as you did for

your business name.

Another important, but often overlooked aspect of your product,

is the price.  It is a fact of life that we associate high prices

with quality and reliability.  Even if there is no appreciable

difference between it and a lower priced product, we tend to

think there is.  The price you charge for something immediately

creates its value.

But if you do charge a higher price for your product or service,

don't let your customer down.  Once bitten twice shy, can mean

the difference between success and failure.  Especially when your

repeat orders are concerned.  You will find out about the best

way of costing your work in a later chapter.

YOUR VEHICLES AS SALESMEN

If you will be needing transport for your business, don't miss

the opportunity of making them work hard for you.  If you need a

car, consider whether you also need to give an image of

prosperity.  A new large car can speak volumes for your business

success.  If this would impress clients to the extent of making

them want to take on your product or service, then it would be a

good idea to make the investment.

If it would make little difference what car you drove, go for

economy.  Whatever car, or van, you buy, make sure that your

business name is visible.  Use your transport as a permanent

advertisement for your business, and keep your name in the public

eye.

SELLING YOURSELF

Just as a book is judged by its cover, you are judged by how you

dress.  In your business it may be that you have to dress in a

certain way.  If you are a joiner you will obviously need to wear

overalls, and you won't need to impress your customers by your

appearance.  But if you are dealing directly with the public, as

you probably would if you were offering a service, the way you

dress could help your business.

In a manner of speaking, you are selling yourself, and in some

cases it can influence your potential customers.  Remember again,

it is how the other person sees you that matters.  Whatever your

business, dress aptly.  If your image depends on appearing to be

well off, dress immaculately.  It will be worth it when it brings

more business your way.

People will want to do business with you if you look successful. 

It all goes back to self respect.  Once again, nothing succeeds

like success.  Project it, and you will be well respected. 

Customers will have more faith in you if you appear to be well in

command of yourself and your business.  This also calls for self

confidence.

The best way to gain the faith of potential customers is to

appear confident.  Get to know your service, or product, inside

out.  Be in the position of knowing all the ins and outs of your

job.  Always be in control, and your customers will put their

faith in you.

YOUR IMAGE ON PAPER

If your business idea is mail order selling, this means that the

only impression you can give potential customers, is on paper. 

This puts you in the position of having to get it right straight

away.  You should not be miserly with your budget for letterheads

and stationery.

Your business card or letter is often the first contact you make

with potential customers.  If your stationery is of good quality,

with imaginative design, it will be much more impressive.  This

will do your image a great deal of good.  Avoid cheap paper and

basic layouts.  Poor quality stationery will give the impression

that your work is the same.

Don't look upon your letterheads as something that has to be done

quickly.  Visit your local print shops and get some idea of what

designs can be achieved.  Take time out to design an imaginative

layout.  It can be fun.  Experiment with different colour inks

and paper.  Ask to see tinted paper, or two colour letterheads. 

Look at different layouts and typestyles.

You must look upon your letterhead as your business

representative.  Make sure it does a good job for you.  Most of

all it must convey the right image for you.  Your letterhead is

your business on paper.  Don't make the mistake of treating your

letterhead as an afterthought.  As well as experimenting with

colours and styles, you could also incorporate a slogan or logo

(or both) into your printing.

SLOGANS AND LOGOS

You can make your letterhead stand out by the use of a slogan or

logo.  A logo can be used to emphasise the type of business you

are in.  For example if you were a computer dealer, you may have

a logo of a computer monitor.

The logo doesn't have to be separate to the name of your company. 

In the same business as above, your name could actually appear on

the screen of the monitor.  Be imaginative.

It is always best to have a logo that is relevant to your name or

line of business.  A common mistake is to use logos consisting of

strange shapes or symbols.  They bear no relevance to the

business or the name on the letterhead.  They also do nothing to

enhance the image of the company.  Even if the weird symbol is a

talisman as used by the third King of Egypt, it makes no

difference.  Your customers won't be impressed.  They don't know

what this symbol is.  It will say nothing to them, and over a

period of time it may even become irritating.

Design a logo that says something for you.  Make sure it means

something, or adds to the layout of the letterheads.  If it is to

be separate to your name, make it reasonably cheap to reproduce. 

That way you can have it printed on your other stationery.  In

time it will become associated with your business.  People will

immediately recognise you for it.

If you choose a slogan, make it reinforce your image - or USP. 

It is always a good idea to have your slogan printed directly

under your name.  People tend to link things together

subconsciously.  There is a growing trend in TV ads nowadays to

announce the name of the company, immediately followed by a

slogan.  In your subconscious you immediately link the two.  The

company becomes the first verse and the slogan becomes the

chorus.  An example is:  "Electricity - energy for life."

Take advantage of this.  People always remember a slogan.  If you

include a slogan directly under your name, people will always

link your name to it.  The obvious thing to do here is to use a

slogan that says something good about you.  Something that

reinforces your service or product.  An example, in this case for

a product, is "Heineken - refreshes the parts other beers cannot

reach", or "Access - your flexible friend".  You can't hear the

name Heineken, or Access, without the rest of the jingle coming

through as well.  Your subconscious sees to that.

Apply the power of this to your own letterheads.  Make the slogan

say something worth knowing about your product or service.  Make

sure your name becomes synonymous with this quality.  It is the

cheapest form of advertising!

If you don't want to use a slogan or a logo, at least say what

you do with words.  Make sure people know what you have to offer. 

Don't make the mistake of thinking that you won't need

letterheads.  Even if you are a retailer, you still write letters

to your suppliers.  These are the people who you hope to rely on

for your stock.  A good letterhead will always speak volumes for

your business.  It may also help you to obtain credit without

questions.

THE 5 'MUSTS' FOR A WINNING IMAGE

1.       You must give a good first impression.  Remember, you

don't get a second chance to make a first impression.  When you

are a new face, potential customers are of utmost importance. 

They will judge you on what they see first.  Make it good.

2.       You must put yourself in the other person's place.  Your

image is in the eye of the customer.  It is not what you think

you are, but what your customer thinks you are, that matters. 

Keep in touch with your customers.  Ask friends for feedback.  

What does your business say to them?  How do they see your

business?

3.       You must sell yourself.  As a sole trader - you are your

business.  If people don't like doing business with you, you will

find it hard to make a living.  This is extremely important.  How

does one man make his fortune, while another man, in the same

line of business, just scrapes a living?  The answer lies in the

way they sell themselves.

         Mr A. is a short-tempered, ill-mannered and scruffy.  He

doesn't enjoy making conversation with his customers.  As a

result, it is unlikely that anyone would enjoy doing business

with him.  In the next shop, Mr B. is friendly, polite and

smartly dressed.  He goes out of his way to chat to his

customers.  He always has a good word for everyone, and makes all

his customers feel welcome.  These two men sell the same sort of

goods, but Mr B. will sell the most.  Make people enjoy doing

business with you, and they will gladly come back to you.

4.       You must exercise imagination with your stationery. 

When you are unable to meet your customers, this is especially

important.  Be different.  Always reinforce your qualities.  If

you use a slogan, make it memorable and flattering to your

business.  Experiment with different colours and styles until you

find something that you like.  Ask friends for their opinion on

what your image on paper says to them.  Always remember to ask

the other person.

5.       You must give a positive impression.  If you can't give

a positive impression, at least be neutral.  Try to give your

name a positive connotation.  Give any potential customer the

impression of being a pleasant business to deal with.  Avoid all

negative words and designs on your letterheads.  This is similar

to selling yourself, but has more in common with first

impressions.  People want to feel positive about spending their

money.  Make it clear that doing business with you is mutually

beneficial.  Give the impression that they will positively

benefit from doing so.

Don't underestimate the power of image.  Your image is basically

how everyone sees you.  People will willingly pay more for a good

service or product.  If you are hoping to charge that little bit

more than your competitors, say why.  Tell them about the

reassurance of quality, or the benefit of personal service.

Never cut corners with your printing.  Your letterhead is doing

the job of selling for you, so dress it up to suit your business. 

Give it your best shot.

10.      SELLING SUCCESS

You must tell people about your product or service.  You must let

them know what you have to offer.  You must generate interest in

your business, and gain the confidence of potential customers. 

In short, you must advertise.

How you advertise is largely a matter of what business you are

in.  You may not need to spend so much on advertising if you are

a retailer.  People will see your shop every day anyway.  A small

display ad once a week in the local newspaper will be sufficient

in this case.

But what if you are dealing by mail order?  In this case, your

advertising is your lifeblood.  Without it, nobody would know you

were there.  In this case you must advertise in the national

press, or trade papers.  And it is likely that you will have to

do it yourself.

To do full justice to the ins and outs of advertising, in all its

various forms, it would take a book of its own.  Rather than

describe a bit of everything, most of which would not help you, I

have covered the sort of advertising that would apply to most

small businesses.  Basically, this is press advertising, sales

circulars, and sales letters.

Unlike BP, ICI, Telecom and the rest, you don't have millions to

spend on advertising.  Nor do you have their reputation for

excellence.  And neither can you afford to employ advertising

copywriters to do it for you.  This means you have to sell to

people who have never heard of you.  You have to make them want

to buy from you.  And you have to do it all by yourself!

So how do you go about advertising effectively on a low budget?

This chapter is intended to explain the various forms of

advertising, and how you can design ads that get the orders. 

Whatever you do, don't worry, it's fun!

WHAT IS AN AD?

That sounds an easy question!  Most people would describe it as a

number of words to tell people about a company, and its service

or product.  In a way this is true.  But whether it works or not,

relies upon the skill of the writer.  If he can convey the

message skilfully enough, people will act on it.  They will be

inspired into action, and will want to see for themselves.  If

the ad does nothing for them, they won't do anything - and

neither will his business.

Your advertising is your most important salesman.  And regardless

of whether it consists of two lines in the classified section of

your local newspaper, or a full page sheet sent in response to an

enquiry - it must have certain basic characteristics.  It should

have a headline that will attract the reader's attention.  It

must have a headline that will explain what is on offer, and how

the reader will benefit from it.  And finally it should suggest

action from the reader.  Be it a letter, phone call or visit, the

reader must be told to act.

This is the format for practically every written advertisement. 

Remember that every part of your ad has an important part to

play.  The ad is only as strong as its weakest link, and care

should be taken over each section.  So now lets look at the ads

that will sell your product.

CLASSIFIED ADVERTISING

This is the cheapest form of press advertising.  It consists of

words only, and is popular among advertisers who don't have much

to spend on ads.  You normally have the option of bold print for

those words you want to emphasise.  Classified ads are usually

charged by the word, slightly more for bold words, although they

may be charged by the line.

Don't overlook the classified ad as a means of advertising.  A

good ad of this sort placed in the appropriate column in

'Exchange and Mart' will bring in plenty of enquiries.  If you

choose to place an ad in 'Exchange and Mart' you have the choice

of having 'impact lines' around your ad.  These are two lines of

solid print directly above and below your ad.  This achieves the

effect of making your ad stand out.  There would be a charge for

these.

DISPLAY ADVERTISEMENT

This form of advertising can be more expensive.  It normally

consists of a box, within which is your sales message.  It gives

you the benefit of being able to use pictures, or drawings, of

your product, to emphasise it.

'Exchange and Mart' charge by basic units of space measuring 48mm

x 51mm, so you can choose any multiple to get the size of ad you

want.  Although the size of a display ad may be larger than a

classified, it doesn't follow that the response will be better. 

If you include a lot of shapes or drawings, you will have less

space to actually talk about your subject.

SALES CIRCULARS

These are usually full page ads that are sent out to people who

enquire about your product.  You can choose between A5 (the size

of this page), or A4 (the size of the sheets of paper in this

book).  A circular should have an order coupon on it, so the

reader can fill it in and send it off, if he wants to buy it.

Designing a sales circular can be great fun, and is a very cheap

method of advertising, as you only need pay for them duplicating. 

They will cost you little to design, and you have plenty of room

to say what you want.

SALES LETTERS

These are normally written on your letterheads, and are addressed

personally to your potential customer.  They are a much more

personal way of responding to an enquiry, and will always impress

a potential customer.  However they can be time-consuming to

write, especially if you only have a typewriter, and have a lot

of enquiries to answer.

With a sales letter, it is entirely up to you as to how you

design it.  But it should be remembered that it is still an

advertisement.  When well written, it is a powerful advertising

tool.

So now we know the sort of ads at our disposal, lets set about

designing an advertisement.

CREATING IDEAS

The first step in writing an advertisement is to familiarise

yourself with the subject.  Find out all there is to know about

it.  This should be simple for you, as it is your subject.  Now

jot down everything about it that you can think of.  Make a list

of every individual benefit of your subject.  You will now use

this list as your 'contents' page.  Everything in your

advertisement will come from this list, in some shape or form.

THE MAGIC OF USP

Before you move on to actually writing the ad, you must first of

all find your subject's unique selling proposition.  Somewhere on

your list will be a feature of your subject that no one else can

offer.  It will be unique to your subject.  It is this feature

that makes your subject superior to your competitors.  The USP of

your subject is its main selling point.  When you begin to design

your advertisement, you will build the framework around this

feature.

THE HEADLINE

This is the part of the advertisement that will make or break it. 

When your reader sees your advertisement, it is the headline he

will notice first.  If the headline 'grabs' him, he will read on. 

If it doesn't interest him, he won't - and there goes your

customer.  This is where you have to be really imaginative.  Make

sure your headline gets attention.

A good headline won't come to you straight away.  And very rarely

will it come out of the blue.  It has to be worked at.  Sometimes

the headline can take longer to write than the rest of the ad!

A good headline will tell your reader what you have to offer, and

what it will do for him.  If it doesn't tell him what he can get

out of it, he won't be interested.  The golden rule again is to

put yourself in the other person's place.  What would make you

buy your subject?  What's in it for you?  Once you know how the

other person sees it, you can aim your message more accurately.

Probably the best form of headline would be your USP.  Adapt it

to appeal to your reader.  Show him how your USP can benefit him

personally, without going into any detail about yourself. 

Remember, he is not interested in you - only what you can do for

him.

THE BODY COPY

Once you have caught the attention of your reader, keep it.  This

is done with the use of interesting and benefit-packed copy. 

Copy is the bulk of your ad.  It is the part that tells your

reader all about the benefits to be received from buying your

subject.  You have caught his attention with a benefit - your

headline - and you must continue to show him benefits.  You are

not selling your product here - only what it can do for your

reader.  You are not selling a reclining chair - you are selling

comfort and relaxation.  You aren't selling insurance - you are

offering peace of mind.

Be imaginative with your copy.  When you are advertising your

subject, don't just tell them what it is - sell them an idea. 

Don't offer them a fitted kitchen - sell them a 'colour

co-ordinated kitchen range'.  Don't offer them a white shirt -

sell them something that is 'right, whatever your mood.'

Include a lot of 'you' and 'your' in your copy.  Research has

shown that copy with 'you' in gets a greater response - 'you will

like', 'your chance', 'your family'.  Avoid using 'we' too often

in your ads.

SUGGEST ACTION

If your ad has a coupon at the bottom, as in sales circulars,

tell your reader to fill it in.  Whatever response you want your

reader to take, tell him how to do it.  And tell him to do it

now!  Inspire him into action.  Make your coupon large enough for

him to write his name clearly.  Ask him to use block letters. 

Don't squeeze in a tiny coupon as an afterthought.  There is

nothing more annoying than having to cram your name and address

onto a coupon the size of a postage stamp.

If your ad is in the classified section, you could sell 'off the

page'.  This sort of ad is called a single-step, or

direct-response ad, because it calls for the reader to respond

(buy) immediately.  Eg:

Enjoy extra income at Christmas with New Forest Firs.  Take

orders for our Christmas trees and earn a fat commission.  Send

$10 for our agency pack, to: New Forest Firs, Anyplace, NW1.

In this case you are asking for money in your advertisement.  If

the cost is small, this may work.  We are naturally suspicious,

and most of us would like further details before we part with our

money.  An alternative would be two-step selling.  Eg:

Enjoy extra income at Christmas with New Forest Firs.  Take

orders for our Christmas trees and earn a fat commission.  Send

18p stamp for details, to:  New Forest Firs, Anyplace, NW1.

People would write for details, and New Forest Firs would respond

by sending them further information, using a sales circular, or

letter.  However, there is a third option, which is becoming

increasingly popular.  This is a combination of both methods,

offering the reader the best of both options.  Eg:

Enjoy extra income at Christmas with New Forest Firs.  Take

orders for our Christmas trees and earn a fat commission.  Send

$10 for our agency pack, or 18p stamp for details, to:  New

Forest Firs, Anyplace, NW1.

This gives your reader the chance to send his money straight away

if he is in a hurry to earn money, or send for details before he

commits himself to spending his money.

For some reason, the mention of details seem to reinforce the

honesty of a request for immediate payment.  It seems that

subconsciously people think it must be OK to take the advertisers

word for it, if they are offering them the chance to get details

as well.  In other words they must be sufficiently confident of

their offer to risk telling people more before they decide to

buy.

In the case of display ads, there are rules governing selling

'off the page' which you should check on before you advertise. 

'Exchange and Mart' publish details of the code of practice on

display ads.  For details telephone their nearest sales office. 

These are:

Northern Sales Office:  0204 399000

Midland Sales Office: 021 236 0077, and:

Southern Sales Office: 0202 671171

INDUCEMENTS

Sometimes it can increase response if you offer an inducement of

some kind.  Examples of this are: send no money; money-back

guarantee; reply before (date) for a 20% discount, and so on.  If

you choose to do this, make sure you keep your word.  And make

sure you can afford to do it.

YOUR DETAILS

Make sure that your name and address is clearly shown in your

advertising.  If your reader has to squint to pick out your name

and address from among a mass of other words, the chances are he

won't bother.

                    THE ULTIMATE SALES LETTER

A rather ambitious statement you may think.  But it isn't really. 

I will try and describe the method for the best sales letter you

could possibly hope to design.  By sticking to these established

and successful techniques, there is no reason why you can't do it

too.

BREVITY

When you are writing your ads, remember you aren't trying to earn

the Booker Prize for Literature.  You are trying to communicate

with the people you hope will buy your product or service.  You

should therefore strive to talk/sell.  Persuade them to buy, in

ordinary, everyday language.

The best way to write a sales letter is to be brief.  Use short

paragraphs.  This way you will break up your copy, and make it

more refreshing for your potential customer to read.  He won't

have to wade through huge paragraphs for the information he

wants.  Short paragraphs make your letters punchy.  You will find

they have a greater impact on the eye.  It appears you have a

great many benefits to talk about when you have lots of short

paragraphs.

A.I.D.A.

When you come to write your sales letter, remember this formula:

A        ATTENTION.  Grab your reader's attention from the start. 

This can be with a good strong headline, or with an exciting

introduction.  Even in a sales letter, you can still have a

headline, so experiment with layout and see which you prefer.  It

could be related to your USP.  But whatever it is, make it 'you'

and make it stand out.  You have about five seconds to sell your

reader on the rest of the letter, so make it good.

I        INTEREST.  This is where you start to manipulate your

reader into wanting your subject.  Do this by selling him on the

idea.  Make him imagine how much better his life would be with

your product or service.  It is this desire that you will make

him want to act, but you must now push him over the edge with ...

A        ACTION.  Tell him what to do, now!  If there is a reason

why he should respond quickly - perhaps there are a limited

number of your subject left, or he can get a discount for

being one of the first 200 to reply - tell him!  Urge him to take

the action you want, and make it easier for him to do so.  If you

can afford, enclose a pre-paid envelope.  Give him a freefone

number, and a time when he can definitely speak to you.

THE FINER POINTS

The most impressive part of a sales letter is the personal feel

of it.  You will be addressing your reader by name, so make sure

you have his name right.  There is nothing more off-putting than

finding your name spelt wrongly in a sales letter.  It shows lack

of care and attention.  Address him not as Dear Sir, but as Dear

Mr Smith.

Always sign your name personally, in ink.  This shows you have

time for your reader.  He will appreciate this further personal

touch, and it could mean the difference between the cheque book

and the bin.

MONITORING YOUR COSTS

Advertising costs money.  Of that there is no doubt.  Some of

your ads will pay for themselves, and more on top.  Others won't

bring in enough sales to cover the cost of the ad.  Finding out

which are working (and which aren't), is an important part of

your business.  You can weed out the poor ones by monitoring

them.

The best way to assess the worth of an ad is to write down how

much it costs over a given period.  As an example we will

illustrate two different ads in two different publications, both

advertising the same product - a standard "fingy!"

Our first advertisement is a direct response ad placed in the

classified section of the local 'Fingy Floggers Weekly'.  This

calls for readers to send $10 (the price of the fingy), without

first asking for details.

Our second ad is a larger direct response ad placed in the

classified section of the national 'De-luxe Fingy Fancier'.  This

also calls for readers to send $10.  Both ads are run every week

for four weeks.

To ensure we know which ad someone is responding to, we use an ad

key.  In the case of our classified ads, where there is no

coupon, we simply put it in our address, (which is Famous

Fingy's, Anytown).  The code will correspond to the publication.

So the address for readers to write to in our ad in the 'Fingy

Floggers Weekly' will be Dept FFW, Famous Fingy's, Anytown.  In

our other ad in the 'De-luxe Fingy Fancier', the address will be

Dept DFF, Famous Fingy's, Anytown.  As you can see, the code uses

the initials of the publication.

After our two 4-week runs, we get the following orders:

'Fingy Floggers Weekly' 20 orders = $200

'De-luxe Fingy Fancier' 40 orders = $400

From this it would seem that our best response has come from the

'De-luxe Fingy Fancier'.  But when we consider the cost of

advertising, and the readership of each publication, a different

picture emerges.

'De-luxe Fingy Fancier'. Readership: 10,000 Cost of Ad: $100 pw

'Fingy Floggers Weekly'. Readership:  1,000 Cost of Ad: $ 10 pw

In the light of these facts, we now see that in fact the best

response has come from 'Fingy Floggers Weekly'.

The total cost of our advertising in 'De-luxe Fingy Fancier'

comes to $400.  Our total orders come to $400 also, so our ad is

just breaking even.  Of the total readership, less than half of

one percent responded to our ad.  From this we can conclude that

there are very few readers of 'De-luxe Fingy Fancier' who are

interested in our product.

If, however, we look at 'Fingy Floggers Weekly', we can see that

the total cost of our advertising is $40.  Our total orders come

to $200, so we are making a healthy $160 profit on our

advertising.  Of the total readership of only 1,000 - five per

cent responded to our ad.  From this we can see that there is a

market for our product among the readers of 'Fingy Floggers

Weekly'.

Using the above as an example, we can see that even though one ad

is pulling twice as many orders as the other, it is costing ten

times as much to do so.  Obviously our ad in 'De-luxe Fingy

Fancier' will have to be adjusted to cost less, in order to make

it work.  If doing this means less orders as a result, we may

have to consider withdrawing the ad altogether.

MINDBLOCK

You have your product or service.  You now need to advertise it. 

You are sat at your desk with a pen and blank paper, and the

intention of writing a good advertisement.  But nothing seems to

happen.  You can't think of anything to write down.  The harder

you think, the harder it gets.

You look at the blank page and you panic.  Nothing makes sense. 

No rational thoughts enter your head, and you can't even progress

in a logical sequence.  I call this state 'mindblock', and if you

don't know how to beat it, you will never create that good

advertisement.

Sometimes it is very hard to get your mind into gear.  There are

days when you are a mine of ideas, and yet others when your mind

is all mixed up.  When mindblock hits you, there are several ways

you can go about beating it.  Only through experience will you

know what works best for you.

The creative process is always very difficult to summon up at

will.  Get away from all distractions before you start.  Don't

sit in front of the TV with your pen and paper, you would be

lucky to get anywhere like that.

Distance yourself from noise of any sort.  Try to relax.  Let

your mind wander.  It is possible that your mind is too full of

worry to concentrate on the matter at hand.  It is your

subconscious that produces the best creative work - it practices

every night as you sleep.  Working on this principle, an

alcoholic drink may loosen you up, and ease some of your

tensions, though don't overdo it!

Perhaps you have run out of new ideas.  If this is the case,

combine a drink with a 'brain-storming' session with an

imaginative friend.  Two heads are better than one, and you may

find a new angle to approach your subject from.  A couple of

drinks at the Dog and Duck, and you may have your ad!

Go for a walk somewhere quiet.  Tune in to nature.  This may have

the calming effect you need to release your imagination.

Try and get started by writing something down.  Anything!  It

doesn't even have to be good.  Just write something.  It could

even be about something else.  But the act of writing something

may have the psychological effect of getting you started.  Very

often it is the blank page that gets you nervous.

Write down all the features of the subject, then put them in what

you think is their order of importance.  Assess each feature and

try and imagine what sort of person would benefit most from it. 

In this way, you will begin to get into the swing of things.  But

whatever you do, don't just stare at the blank page.  Try one of

my suggestions, and get something on paper!

HINTS AND TIPS

Because advertising is such a massive subject, I have rounded it

off with a few hints and tips that will help you in your quest

for creating ads that sell.  They may not all apply to you, but

I'm sure that most of them will help you.

In your headlines, use words that grab the attention.  Words like

MONEY, CASH, FORTUNE, GUARANTEED, LOVE, SEX, SUCCESS, POWER, and

so on.

When you are designing circulars, use letraset transfers for the

headline.  Choose a striking typeface that stands out boldly, but

avoid the flowery, arty styles.

Whatever your sales message, say it positively.  Never say it

half-heartedly.  Try and keep a positive tone in your ads.  Try

and avoid 'don't', 'won't', 'can't', and 'couldn't'.  Use 'do',

'will', 'can', and 'could'.

Sometimes you can choose where, in the publication, you would

like your ad.  The places which receive most attention in a paper

or magazine are: page three (surprise, surprise); any right hand

page position; right column - top of page.  Honestly!

If you ever get any letters from satisfied customers, print their

comments in your ads.  Testimonials are powerful sales tools. 

People will identify with other satisfied customers.

Whenever you send an order to someone, always include another

order form, or sales circular (if there is an item on it your

customer hasn't yet bought).  This will remind him of your other

products.

Remember to use the 'you' appeal, in your sales letters.

Don't say: "Thanks for enquiring about our product".

Say: "Thank you for your enquiry".

If you give away any promotional material with your response to

an enquiry, make sure it is an item of everyday use, and has your

name, or that of your business on it.  This will keep your name

in front of your potential customers every day, as a reminder to

them.  Good examples are pens, diaries, and notepads.

When you offer the main benefit of your subject, make sure you

don't oversell yourself.  If your offer sounds ridiculous, nobody

will take you seriously.  If you make a promise, make sure it is

believable.  And make sure you fulfil it.

When you have sent information in response to an enquiry, make a

note of the date.  If you haven't received an order after 3-4

weeks, send a follow-up letter.  This will be another sales

letter, reminding your potential customer that he asked for

information, and that you have not heard from him since.  Ask him

if he requires any further information about your product. 

Remind him of the benefits of your product.  Tell him what he is

missing out on by delaying.  You could even offer a discount on

the goods you are selling, as an incentive for him to buy.

And once again, put yourself in the other person's place.  Try

and see what's in it for him.  Give him benefits, not jargon. 

Even if you did make one million pounds last year, it still

doesn't make the slightest difference to him.  Give him what he

wants, and you'll turn a curious reader into a happy customer.

And what is basically what it's all about!  When you have

mastered that technique, you are on your way!

11.      TAKING CONTROL

We know that practically anyone can start in business for

themselves.  The problems arise when you are up and running. 

Staying in business is much harder than starting in business.  It

can be enough to have one unique product, especially if it costs

little to produce, costs the earth to buy, and everyone wants it. 

But very few of us are in that privileged position.  Instead, we

will have to keep our business running by hard effort, and

imaginative thought.

In this chapter, you will find some very useful tips for getting

control of your business, and staying in control.  Get in the

habit of applying these methods, and you will have much greater

control over your business, and its success.

ANALYSE YOURSELF

No matter how good something or someone is, there is always room

for improvement.  When it comes to business, your greatest danger

is complacency.  It is easy to say, "that'll do", when your

business is guaranteed.  You may see customers returning again

and again for your service, or product.  But never take them for

granted.  Okay, so they may be with you now, but if a better, or

comparatively cheaper, option was to become available - would

anything stop them from taking their custom elsewhere?

This is why you must analyse yourself regularly.  Think how you

can improve your product, or service.  How can you make your

customers feel more welcome?  And this does not just apply to new

customers.  If you have some satisfied customers - that's great. 

But you must continue to please them.  Your business often depends

upon repeat custom.  It is repeat custom that keeps a business

going through thick and thin.

Sit down regularly and assess your business attitude and

procedure.  Can you improve any aspect of it?  Is there any way

you can make it even more impressive?  Remember, your competitors

are constantly trying to better you.  If you become complacent,

you will wake up one day to find they have made your product, or

service, obsolete.  When this happens, your customers will be

gone - and your business will be finished ...

STAY IN TOUCH

Just as you need to remain aware of your service, you must always

stay in touch with developments in your line of work.  There are

very few businesses that can claim to have stayed unchanged over

the last twenty or so years - and still remained successful.  New

ways of doing things are being introduced every day.

You should never try to resist progress.  If there is some new

development in your line of business - check it out.  Don't get

left behind.

By the same token, don't rely forever, on the same items, or way

of doing things.  Always be on the lookout for new products, or

services.  If it makes financial sense - add another string to

your bow.  once-upon-a-time, hairdressers just cut your hair, and

that was that.  Unthinkable!  Now you can get everything from a

trim, to eyebrow-plucking, a solarium, and a massage!  By moving

with the times - and sometimes even setting the pace - they have

vastly increased their clientele, not to mention their income.

Always be on the lookout for something new, and original.  By

setting the pace yourself, you will ensure a steady flow of

regular customers - with a new rush of curious prospects

following on.

KEEP YOUR EYE ON THE MONEY

Believe it or not, at least 26 per cent of all new businesses

will fail within 2 years.  The main reason for their failure will

be cash flow.  This is the rate at which money flows in and out

of your business.  The knack is in making sure enough has flowed

in, just before you have to pay a lot out.  This is not always

easy, and very often is out of your hands.

When you are considering your business idea, you may like to

consider how you will be paid.  If you will be in a position of

offering credit, you may find it a nightmare early on. 

Especially when you have a number of bad payers.  These people

might owe you thousands in total, but they are still hanging on

until the last possible moment to pay you.  Meanwhile, you still

have to pay your bills on time.

Large firms are notoriously slow-payers.  The bigger they are -

the worse they are.  This is a fact.  If the problem becomes bad

enough, you will be unable to meet your bills.  You may also be

unable to meet a large order because of insufficient funds.

If you choose a business which is based on 'pay-first' - like

retailing - you won't have this problem.  Customers - usually the

public - will have to pay you the money first, before they take

the goods away.

In an earlier chapter, you saw the importance of cash flow

forecasting in preparing a business plan.  You also made a

business plan and forecast of your own.  This one was intended to

outline your goals.  If you sincerely want to do your best in

your own business, you will maintain a regular plan and forecast. 

This way you will always be in control of your money, and will be

able to play to avoid any serious cash-flow problems before they

threaten your livelihood.

COSTING YOUR WORK

The question of how to set prices is a highly individual one. 

You may look around at your competitors' prices, and peg yours

around there.  You may try to undercut them, by charging much less

than them - not always a good idea.  Or you may aim for a 'snob'

market, and charge high prices.  If the quality of your product,

or service, can justify this price, you can do well out of this. 

However you choose to set your prices, it is wise to consider a

few pointers.  These might help you to decide how to do it.

THE CUSTOMER WILL ULTIMATELY DECIDE

This is a lesson that many businessmen learn the hard way.  They

may decide that their product, or service, has a highly unique

feature.  As a result they decide to charge a much higher price

than anyone else in the same field, thinking that by its

uniqueness, it will sell.  What they didn't bargain on is the

customer's willingness to pay that price in order to get this

unique feature.  You have probably thought the same thing

yourself - "I don't care what it does, I am not paying that

price".

When this happens, the trader will be forced to lower his price

to a level at which the public will be interested.  If this price

is too low to allow for the manufacturing costs of this 'unique'

feature, then it isn't worth having it in the first place!  The

key to setting the ultimate price is to charge the highest

possible price that the public will be willing to pay.  If you do

this, it should allow you a handsome profit.  If it doesn't,

you're doing something wrong - your material, or your

manufacturing process, is probably too expensive.

THINK 'PROFIT'

The only reason that anyone is in business, is to make money. 

Nobody goes into it with the intention of losing money.  When you

are setting your prices, take into consideration all your costs. 

Write down how much the materials cost, what the manufacturing

process costs.  The price of special tools, equipment, and

clothing.  Allow for travelling costs and other expenses.

When you have assessed the cost of all these - add a figure for

your time, if you are providing a service.  This is the amount of

work you can put into each job.  If you are hoping for a wage of

$500 per week, and you intend to work 40 hours per week, then

divide your wage by your hours, and you will arrive at your

hourly rate:

         $500 divided by 40 = $12.50 per hour.

This figure should be costed into your work.  It is difficult to

fully assess your overheads over a full year, but if you can

arrive at a figure, it will help you with your costing.  If you

were in the business of making decorative lamps, you would have

to estimate how many you could hope to sell.  Once you know this

you can begin working out how much it will cost you to produce

this many.

If you believe (through your market research), that you can sell

1,500 lamps per quarter, you would work out the cost roughly like

this:

Overheads for 3 months              $10,000

Cost of materials and manufacture   $ 5,000

Total Costs over three months       $15,000

To reach a break-even figure, you would have to charge $10 for

each lamp.  In order to achieve your wage of $500 per week, you

would have to work out this cost over three months - 500 x 12 =

$6,000.

When you have added this figure to your total costs you will get

a new figure of $21,000.  Therefore in order to achieve this

amount from sales, you will have to charge a price of $14 per

lamp.  If the public will willingly pay this, and you are happy

with $500 - that's fine.  But if the public are willing to pay

more, it seems silly not to take advantage of it.

See what your profit would be if you were able to sell your lamps

at $25 each, instead of $14.

1,500 lamps @ $25              =   $37,500

- Total Costs                  =   $15,000

Clear profit                   =   $22,500

Your Weekly Wage               =   $ 1,765!

Could you get by on that?

The key to making your prices pay, is to think profit all of the

time.  Charge as much as the public is willing to pay, and you

should do well.

TIME IS MONEY - YOURS!

The only saying - time is money - is always true in your own

business.  Time will take on a whole new meaning when you become

self-employed.  For a start there will never be enough of it!  It

therefore makes sense to make the best of the time available t

you.

Arrange your day the night before.  Make a list of the things you

have to do.  Now re-arrange the list and put them in order of

importance.  At the top of your list should go your 'musts'. 

These are the jobs that must be done.  When you start every new

day, you can then make sure that the things that are most

important, always get done.

When you know what has to be done, give yourself a deadline for

its completion.  Always try to keep to your deadlines.  This way

you will be able to stay on course for your goals, and your day

won't be wasted in deciding what to do next.

YOU CAN BE IN TWO PLACES AT ONCE

Well your voice can.  If your business involves arranging

appointments to meet clients, get an answerphone.  That way you

won't lose any jobs.  If someone can't reach you straight away,

they will inevitably go elsewhere.  With an answerphone you are

always available.

When you record your message, always try to sound pleasant and

businesslike.  Above all, don't try and be witty or lighthearted

unless you are in the business of being a freelance clown - (they

do exist)!

TAKE NOTES

A very useful habit to get into is note-taking.  When you start

your business you will have so much going through your head that

even the best idea can be forgotten.  These fleeting fragments of

inspiration can be lost forever, unless you commit them to paper

immediately.  Flashes of genius often come at the most

inopportune moments, so always be prepared.  This includes having

a pen and paper beside your bed.

Make a point of buying a small notepad, and a reliable pen, and

take them with you everywhere.  It is handy for writing down

information, names, addresses and telephone numbers.  Despite

what you might think, you can't remember everything.  And when

your livelihood is at stake - why take the chance?

LOOK AFTER YOURSELF

You are your business.  Nine times out of ten, if you don't work

- you don't earn.  Don't take your business so seriously that it

begins to have a detrimental effect on your health.  Stress

kills, and nowhere is stress more common than in business -

especially when its your own.

Always take time to unwind.  We have already established that you

should enjoy the work you are doing.  But don't kill yourself

with overwork.  Tenseness creeps up on you, and headaches become

more common.  Spend a part of every day in some kind of physical

sport.  Give your body the release it needs, and you will feel so

much better as a result.

DON'T FLOG A DEAD HORSE

In the beginning, you may be eager to take on as much work as you

can handle.  Sometimes you will be offered a 'one-off' job, and

you will give a quote off the top of your head.  The fact that

you will probably lose out financially from your

spur-of-the-moment pricing policy won't seem to matter.  After

all - you've got a customer!

Although in time, your empty wallet will ensure you don't repeat

that policy too often, you may still find it hard to cast off a

product, or part of your service, that isn't doing too well for

you.  It is sometimes hard to accept that your 'brainchild' isn't

working, but it is imperative that you do.  If it is losing you

money, you must cut it loose.

With experience you will be able to assess whether a job is worth

taking on, or whether it will be more trouble than it is worth. 

This is a valuable quality to have, and will save you much in the

way of time and money.  Do all in your power to avoid committing

yourself to lost causes.

Finally, there is no room for emotion in business.  Favours for

friends are fine in principle, but they have no place in your

business.  You may find many 'friends' waiting to take advantage

of you.  Stay in control of your business, and cut your losses.

12.      PRACTICAL PROSPERITY GUIDE

On the road to success, you will meet many obstacles.  People

will try to make it awkward for you; banks will withdraw their

support when you need it most; customers will complain for the

sake of complaining, and suppliers will try and take advantage by

pushing up their prices.  You must meet these problems head on,

and deal with them to your benefit.  Experience will always tell

you the right and wrong way to deal with them.  You will make

mistakes - so learn from them, and try not to make the same

mistake twice.

In this final chapter, you will find some successfully proven

techniques that will help you in your quest for your fortune. 

Some may seem simple, but they are all very powerful.  Work at

them, and you will reap the rewards of success.

ONE SUCCESS LEADS TO ANOTHER

Remember the section earlier about creating goals?  These are the

single, most important, ways of evaluating your success.  When

you create a goal, you know where you are going.  You know you

have succeeded when you get there.  But for continued success,

you must continually upgrade your goals.

Upgrading your goals will take you to greater, and financially

better, achievements.  But don't upgrade for the sake of it.  If

you have achieved sales of $10,000 for the quarter - don't

automatically say you want sales of $20,000 next time.  This

would be fine if you could handle it.  But you may have been

working flat out to make that $10,000, and it may be physically

impossible to double your sales.  If you were making something,

it would be impossible to double your output without employing

someone else.

The key is to upgrade your goals - but don't make them

impossible.  Take things one small step at a time.  Remember,

even the longest journey begins with one small step.  Which is

followed by another one.  Eventually the journey is complete. 

Progress in this manner, and you will always succeed.  Savour the

feeling of success - and more will follow.

IF YOU WANT IT - ASK

You are now well aware of the need for a positive attitude.  To

succeed in business you will have o be a 'go-getter'.  If there

is something you want - ask for it!  Even if it seems unlikely

you will get it.

You have nothing to lose by asking, and you may even get a

surprise.  Nothing ventured - nothing gained, so the saying goes. 

Explore every possibility, and you will turn many 'hopeless'

situations to your advantage.

PROTECTING YOUR SOURCES

Throughout the normal course of your business, you will

undoubtably stumble across something that you can use to your

advantage.  It may be high-quality, low-cost printing.  It could

be some method that greatly improves your service.  Whatever it

is - guard it.

For as long as only you know this secret - you have an advantage

over your competitors.  If they have no way of finding out how

you can offer such cheap prices, they will agonize over how they

can compete with you.  They may have to lower their prices, even

if they can't afford to do so, and you will be able to match them

and afford it.

But if you told them how you can offer such a great service, or

such a cheap product, they would soon take advantage of your

source.  Then you would be no better off.  Business is a cut

throat world. and every little trick that saves you money, or

improves your service, will help to get you to the top of the

pile.

GETTING RICH - AND GETTING RICHER

Ever wondered how the rich manage to make so much more money

while apparently doing no extra work?  The old saying that 'money

goes to money', has more than a grain of truth.  Yet the main

reason why the rich get richer, is simply because their wealth

becomes self-generating.

If you won $1,000,000 on the football pools, it is unlikely that

you would stash it all under the bed.  You would take advice, and

invest it.  The manner of your investment would depend upon the

risk you are willing to take.  The stock market has long been a

favourite 'game' of the rich.  The risks can be high - but the

rewards have always been much higher.

But you don't have to speculate on the stock interest to take

advantage of this principle.  Every bank will offer a

high-interest account, which you would open by investing an

amount not less than the minimum for the account.  From this

simple transaction we can use the principle of simple interest.

SIMPLE INTEREST

It is a favourite opinion of the man who fills in his pools

coupon, that if he actually won a million pounds - he wouldn't

have to spend it.  He could just put it in the bank and live off

the interest.  In fact this is quite plausible.  If he could put

the whole amount in an account paying an annual rate of interest

of 15% (and he could leave it there for a whole year), the

interest payable at the end of the year would amount to $150,000. 

This is the equivalent of $12,500 per month!  All this money for

doing nothing!

In this manner, he would be able to live on $150,000 per year,

every year, for as long as he left than one million pounds in the

bank.  Obviously this sort of money is enough for most people to

live on - but he would never get any richer.  In actual fact he

would get poorer every year, as inflation pushes prices up.  Of

course, with this sort of money, it would not become a serious

problem - but you can see the principle.  One million pounds will

not be worth as much next year as it is now.

So how do the rich get richer?  Quite simply, they use the most

powerful kind of interest available.  They do this by leaving the

whole of their investment in the bank - interest as well.  By

doing this, they put the magic of compound interest to work.

COMPOUND INTEREST

If our man left his million in the bank for one year, it would

earn him $150,000.  Now, if instead of withdrawing this amount,

he left it in the bank - in another year, he would receive 15%

interest on $1,150,000.  This amounts to $172,500!  So his new

balance, after two years, is $1,322,500!  An incredible way to

earn money.  In fact, in five years time, he would have a balance

of $2,011,357 - all for doing nothing.

Obviously you may not have one million pounds to invest, but you

can see the power of re-investment.  And how it can earn you more

money, without you having to do anything.

THE RULE OF 72

Knowing how much money you can expect to make from an investment

is useful.  If you have a goal of wanting to have $20,000 saved

up, in five years time, it is easier if you have a method of

achieving it.  You may have a future purchase to make.  This may

be private schooling for your children, or a deposit on a house

for them.  If you have some money to invest for this reason, and

you know how long it will be before you need it, you can find out

the best way of going about achieving it.  This is by using the

rule of 72.

As an example, we will say that your son will be leaving primary

school in five years.  You want him to have the benefit of a

private education, and you estimate this will cost you $20,000. 

You have $10,000 to invest now, for this eventuality, but you

need to make sure it will have grown to $20,000 in five years. 

Using the rule of 72, you can find out how long it will take to

double your money.

In order to find out how long it would take to double your money,

using compound interest, you simply divide 72 by the annual

percentage rate paid on the account.  So if you invested your

$10,000 in an account paying 9%, you would divide 72 by 9.  This

gives you the answer 8.  So it would take eight years for your

money to double.  This would take too long for your purpose.  So

you would need to find an account that would give you the rate of

interest you would need to double your money.

To do this, simply reverse the calculation.  Divide 72 by the

number of years you have in which to double your money, in this

case 5.  Your answer is 14.4 - so you would need an account

paying an annual interest rate of at least 14.4% in order to

double your money.  Knowing this, you would then be able to plan

your goal to perfection.

YOUR PERSONAL WEALTH INSURANCE

So how do you go about investing for your future financial

success?  If you are a naturally good saver, you will already

know the benefits of regular saving.  If you aren't - you will

probably need to discipline yourself. You can do this by charging

yourself Personal Wealth Insurance.

Once your business is up and running, charge a direct debit to

your account.  This will withdraw a regular amount from your

account every month, and pay this amount into another account. 

This new account will be one that pays the highest possible

interest you can find.  This is your Personal Wealth Insurance

Account.  You should pay a regular sum into this account every

month - without fail.  You should leave the money in - interest

as well.  Using compound interest, and paying in further regular

amounts, you will soon start building up a tidy sum.  Your

Personal Wealth Insurance, is your investment in your future. 

Pay in as much as you can afford.  You will never regret it.

KEEP SMILING

I know Up and Running will help you in your quest for your

fortune.  The secrets you have learned will stand you in good

stead.  They will work for you.  But only if you apply them.  I

can give a guarantee because I know they work.  They are working

for millions of others.  There will be only one reason why they

won't work for you - and that will be because you aren't applying

them. Nothing comes easy - least of all success.  But you have

the secrets before you now!  It will never be easier for you to

succeed.  Refer to this book as often as you need to.  Use it as

your guide to success - to help you achieve your dream.

Before you begin your journey to your future, think carefully

about what you want out of life.  Do you just want to be rich?

If so, what happens then?  There are so many people who started

their own business with the intention of getting rich.  They

wanted the best that life had to offer.  But when they

achieved it, they weren't happy.

They had gone from using money as a means of achieving the life

they wanted, to just amassing money for the sake of it.  It never

made them happy, they never enjoyed what it could buy them.  It

was simply a collection of zeros on their bank statement.  And

they became recluses.  Slaves to the process of making more and

more money - money which they would never enjoy.

As I said before, enjoy what you do.  Don't let the act of making

money become an end in itself.  Take time out to actually enjoy

your money.  Even if its only now and again ...

Keep smiling, and it will all be worthwhile.