Seattle Small Business Blog

There’s a difference between being a boss and a leader. Which one are you?

Webster’s definitions of a boss include: A person who exercises control over others and makes decisions, usually the person of highest rank or authority, a supervisor, a person who commands in a domineering manner.

In contrast the definitions for a leader include: A person who rules, guides, inspires, escorts, directs, influences, persuades, and is out and ahead of or at the head of others. They have influence, power, and commanding authority over those they lead. They tend toward a certain goal or result, are in the foremost position, and usually “pull” people toward what becomes a common vision. People usually follow a leader because they want to rather than have to.

Influential leaders, who lead with great ethics, whether they are Presidents, Kings, corporate CEOs, Girl Guide or Scout leaders, bear some traits in common. They are passionate about what they do and what they believe in; they are visionaries, can see the “big picture,” and are driven inside to draw people into what they believe – to jump on the train with them.

A boss in a grocery store sees shelves that need to be stocked, employees that need to be scheduled, doors that need fixed, floors that need to be cleaned, and the year-end staff social that needs to be planned. They work toward these ends, seeing them to fulfillment, sometimes in very creative ways.

A leader in a grocery store sees those things too, but he or she also feels excitement about being in business, or about making profit from people’s need for food and daily household products and how that profit can be poured back into the store to make it superior over other grocery stores. They care about and inspire, their staff, realizing that they are the front line ambassadors of the store. They not only see where the store is at now, but they also envision what it will look like or how it will impact their community ten years from now. Whether they actually own the store or not, they make the store their own.

With a good leader, people usually feel drawn, or “pulled”, into the same vision. Have you ever gone into a store or restaurant and been treated so well by the staff there that you just knew that you would return again? Not only did you just receive knock-your-socks-off customer service, but you also met employees empowered by the vision of a true leader.

A leader usually develops and motivates leaders under them. People who get “fired-up” and captivated by the vision and rise to the occasion.

For leaders, leadership is a way of life. If there’s leadership spontaneously required at a gathering, leaders will step up to bat, even if it’s just to open a door as people arrive.

Can a boss be a leader? Definitely.

The question is: Which one are you? Or rather, maybe the question should be: Which one would you like to be?

If you employ people in your business, you’re going to be faced with a number of tricky management issues – dealing with tardiness, sick leave, and keeping your staff motivated.

Performance reviews can be useful for motivating employees, but only if they are accurate. An inaccurate review, which fails to recognize the employee’s value to the organization, can be worse than no review at all.

If a performance review fails to take note of an employee’s shortcomings, it won’t be taken seriously. If an employee consistently performs poorly, it’s vital to document this, as well as any corrective action that is taken.

Your staff may be genuinely unaware that their performance in some areas is poor (or exceptional!), unless you tell them.

Most employers conduct performance reviews annually, in order to decide on salary increases and bonuses. Since performance reviews should build on previous reviews, it’s better to conduct them more regularly – every 4 months is a good frequency.

Employees thrive on feedback, and regular performance reviews provide a consistent framework for providing positive reinforcement.

Under-performing employees can also benefit. Regular reviews can identify weak performance areas, and allow you to set clear goals and expectations, and to coach and mentor the employee to improve their performance.

Objectivity is vital. You need to concentrate on measuring performance, and not on quirks of personality.

The performance review should relate directly to the employee’s job profile – your employees do have job profiles, or job descriptions, don’t they? The job profile should identify the Key Performance Areas for the job. For instance, some Key Performance Areas for a receptionist might be:
* answer incoming calls within 3 rings
* take messages accurately and pass them on quickly
* type at a rate of 25 words a minute

The more measurable a Key Performance Area, the better. Some other measurable Key Performance Areas include:
* number of sick days
* number of absent days
* number of instances of tardiness
* number of customer complaints
* number of customer compliments
* number of co-worker complaints

Of course, you would have to keep accurate records of all of these, in the employee’s personal file.

You should prepare a performance review form for each employee, which lists the Key Performance Areas for the job, and provides a matrix for you to record the performance in each area.

For example, you might rate the employee’s performance in each Key Performance Area against a scale of ‘Poor, Satisfactory, Good, Very Good, Excellent’

Performance reviews should be a collaborative process – as far as possible, the employee should agree with your assessment.

Studies have shown that successful entrepreneurs possess these characteristics:

1. Self-confidence

This is that magical power of having confidence in oneself and in one’s powers and abilities.

2. Achievement Oriented

Results are gained by focused and sustained effort. They concentrate on achieving a specific goal, not just accomplishing a string of unrelated tasks.

3. Risk Taker

They realize that there is a chance of loss inherent in achieving their goals, yet they have the confidence necessary to take calculated risks to achieve their goals.

Entrepreneurs are people who will make decisions, take action, and think that they can control their own destinies. They are often motivated by a spirit of independence which leads them to believe that their success depends on raw effort and hard work, not luck.
So which of these three main characteristics is the most important? Believe it or not, it has to be self-confidence. Without self-confidence, nothing else is possible. If you don’t believe in your abilities, then the first challenge that arises may knock you off the path to achieving your goals. Here are a few things to keep in mind for maintaining a higher level of self-confidence.

Positive Thinking

Well, it all starts with a positive attitude, doesn’t it? Believing that something good will happen is the first step. Negative thinking simply is not allowed. You must truly believe that there are no circumstances strong enough to deter you from reaching your goals. Remember too, that positive thinking can be contagious. When positive thinking spreads, it can open doors to new ideas, customers, friends, etc.

Persistent Action

Now all of the positive thinking and believing in the world is useless if it is not applied towards a goal. You have to take action, no excuses are allowed. This action must also be persistent. Trying once and then giving up is not going to be enough. Keep at it one step at a time. If you can’t get by a certain step, then find a creative way to try again or just go around it.

At the beginning of this article we identified a few traits that are common among successful entrepreneurs. You should be able to look ahead and see yourself where you want to be. Now just maintain a strong belief in yourself and your skills, stick with it, and don’t give up. If you can do that, you’re already half way there!

Preparing to sell a business may not be as straightforward as it seems. Selling a business requires a balance between enticing buyers for the business and, at the same time, keeping the current customers happy. If the customers are unhappy then the business value drops and the sale may not go as planned. If a person goes into selling a business without planning or the knowledge of how to do so, they may end up losing money.

The following list explains the first steps a person should take to prepare to sell while also keeping customers happy.

Get a quote on the value of the business. This is extremely important. If a business owner asks too much, they may have a hard time selling, but if they do not ask enough they are losing out on valuable revenue. A professional can help with this because they usually know how certain time and economic factors can contribute to the value of a business. But you should also do your own research. You are the best source to know your own niche market. This appraisal should be done before selling to get the actual value.

Determine if the sale will be public or private. If there is a chance that customers will be lost once they find out the business is sold, then it is wise to do a private sell. This way the new owner will have a chance to gain their business. Also, will the employees stay or will they leave for fear of the upheaval of new ownership? Most buyers would like to see that a business could withstand any changes that can come about with a sale. These factors should be considered when determining if a sale should be public or private.

Set up a marketing campaign. Just as a business owner needs to advertise their products, they need to advertise the sale. The marketing efforts will be largely based on the type of sale, either public or private. In the case of the private sale, an example of this may just put the business name out in the public by advertising donations to charities. Just remember, the appearance of the business can help determine the value. This goes for physical appearance as well as just appearing financially secure and stable.

Prepare all information to show buyers. Potential buyers will likely be interested in seeing all the details of the business. They will want to know why the business is being sold and will need to see financial statements and tax returns in order to make an informed purchase. A business is perceived as much riskier with no solid financial history and that can decrease the sale value.

Preparing by doing these four steps can make selling a business easier. The key is they can be done up to years before the actual sale. But, they are also just the tip of the iceberg. They do not cover every aspect, like legal and financial considerations, so a business owner should contact their lawyer, accountant, and other professional assistance to ensure everything is done correctly.

As a business owner you have many assets. Your expertise, your client base, your brand, the list could go on. But what is your number one asset and how do you protect it?

It’s your health, of course. Without good health, your expertise, your client base and your brand will all suffer.

You need good health to be able to function effectively, be creative, productive, to have enough energy to see projects through.

However, it is all too easy to neglect your number one asset when running your own business. Client demands, commitments, family life, crises, all compete for your time and attention.

You feel you can’t justify regular breaks during the day because work is piling up! You stay up later and get up earlier in order to stay on top of things. Perhaps you’re not even sleeping as well as you used to.

Did you cancel dinner out with friends because you simply didn’t have the time or energy? How about weekends, is work seeping into Saturday and Sunday? Are you grabbing fast food on the run just to save some time?

If any of these questions resonate with you it’s time to take action. There’s no need to make drastic changes straight away. Start by making small changes.

Take regular 15 minute breaks throughout the day for a quick stroll outside, or for sitting quietly doing nothing. Rather than wasting time, you’re actually going to be saving time because when you get back to work you’ll be so much more efficient and productive.

Exercising regularly will enhance your energy levels and general health immensely. It doesn’t even have to be slogging it out at the gym or running. Thirty minutes of walking a day will greatly improve your sense of well being.

Make sure you’re getting at least 7 or 8 hours of good sleep a night. Reduce the amount of caffeine you drink during the latter half of the day so that you’re sleeping more soundly.

Staying connected to your friends and family is essential for balance. Schedule time out to share laughter with friends over dinner and enjoy a game of Frisbee in the park with the kids. Don’t let your hobbies and other interests slide because of your business. If you like reading, relax and read books that aren’t related to business!

Make a commitment to yourself that at least on one day of the weekend you don’t turn your computer on at all, you don’t go into your office, you don’t even think about work!

Multi-tasking is a natural aspect of business for women business owners, especially those with families.

The fact is if you are a woman business owner, you are most likely already a multi-tasker of epic proportions. You know how to combine family, childcare and business tasks as a matter of course. Whether it’s carpooling, deliveries, and business errands, or phoning clients, babysitters and arranging multiple schedules, you think in terms of multiple areas of impact most of the time.

When your business is in your home you have additional challenges and benefits which your multi-tasking abilities can make work for you. You can handle household chores and meal preparation in between appointments, phone consultations, or writing that new piece for your monthly newsletter. You routinely make decisions which involve multiple areas of your life more or less simultaneously.

Taking that next step of how to apply your natural ability to enhance your business success is not so difficult, but it does require a new focus. You have to start thinking in terms of the various areas of your business the same way you think of the various areas of your life. You have to step back and get a little wider view of things.

The best way to do this is to set aside some quiet time when you will not be disturbed and really take a look at what it is you want your business to accomplish, in what time frame. Using the backward planning approach works very well.

Once you have developed your general goals, rework them into specific targets. In other words, take the generalized goal, say of “X number of new clients by X” and develop the set targets you’ll need to accomplish to reach that goal.

A project plan (target list) and work chart can be a very helpful tool for the next process of breaking down each target into the associated tasks required to fulfill each objective. Using these two tools, you can create the work chart for each specific area, and then see how the various targets are related. For instance, a new promotional pack for your business will have various components: brochure, logo, support materials, testimonial letters, perhaps a multi media presentation. Each of these items becomes a block in the project work chart, and completing portions of any one may provide materials for the others.

Once you have accomplished this you will have a clear picture of all the tasks required for each area of your business. Now the process of checking in on the larger picture as you work each day becomes a simple matter of using these tools to keep you on track.

Target lists and project work charts are tools often used by engineers as they develop a new piece of equipment, hardware, firmware, or software. First the targets or functions of each piece are defined and then the steps to creating each working component are laid out. By following this method, the relationships between the various targets, or, in this case, components of your business plan, are visible and easily identified.

This avoids getting the cart before the horse, or working on portions of the plan that cannot be implemented without other components also being in place.

The next step is to integrate the project work charts into a daily system of self check as you naturally group your work according to like tasks which can be accomplished in clusters of multi-tasking events. In this way you can significantly increase your progress and your business will thrive.

Once you have clearly charted targets for the business you can start to apply the multi tasking skills you aridly have to what needs to be done to make the targets happen.

The next step to optimizing your multi-tasking is to ask yourself where you do your best work. What gives you the most energy and creativity? What is the most difficult for you to tackle of the things that require your attention?

A professional counselor, in the midst of changing her business from one based on individual clients to seminars and group events met the challenge of having to think in ways unfamiliar to her by relocating her new event planning activities to her kitchen! She recognized that her most relaxing and enjoyable activity was preparing fresh foods for family and friends. When she moved her event planning to the kitchen, her natural confidence and creativity in that environment enabled her to expand her event planning thinking much more easily than she could in her office.

The food and her pleasure in its preparation, as well as her sense of well being and confidence in this environment gave her the creative energy she needed to expand her thinking and create new and different events for her clients. By providing herself with the support of her naturally creative environment, in this case cooking, she added to her creative power in an area where she had less strength and experience.

Often, by breaking up more mundane tasks with those which are more creative or inspiring, it is possible to keep your energy level higher than if you were to attempt to force yourself to do the “boring” task alone.

Learning your own personal rhythm and areas of your own natural creativity and enthusiasm and thinking in ways which allow you to tap into those parts of yourself you can greatly enhance not only the results of your work, but the sense of well being you find in your work.

Finally, as a multi-tasker, there is some danger that you can become too diversified and lose the focus and clarity of knowing what is most important in your business and in your life. By implementing target lists and project work charts as a guide to daily actions and updating them as each new target is complete you have a simple and effective system for starting each new day, and for meeting all your business objectives.

The daily action of a quick review of the target list and work chart also provides the added benefit of stimulating new ideas and inspirations to continue enhancing your multi tasking skills, keeping your work fresh, interesting and exciting.

In today’s society we often put a lot of emphasis on how things are done. Present a plan with lofty goals to the board of directors of any company and surely they will ask you how you suppose those goals will be met. Apply for a mortgage and you will be asked to demonstrate how you plan to pay it off. Give a professor the correct answer to a complex question and you might be asked how you arrived at your conclusion.

The How is often so predominant that the Why is sometimes completely forgotten as if the Why is of less importance. Nothing could be further from the truth. Why you want something is infinitely more important than how you think you’re going to achieve it.

To find out what your Why is start with identifying what it is that you want. After all, if you can’t visualize what you want how could you ever hope to realize it?

This seems easy enough but apparently it’s a bit more challenging than one would think. Ask an adult to write down everything they want on a list with a minimum of 50 items and you will find that for most it turns out to be quite difficult. Stating that you want a certain amount of money, want to quit working or just want a bigger car than your neighbor can cause people to experience discomfort. After all it may make them appear greedy or lazy and that’s not generally considered positive.

So they try to come up with something that’s socially acceptable and in doing so make what they want subject to the opinions of others. Kids on the other hand have no problem here. They’ll come up with 50 items and more in no time, listing things you didn’t even know exist. They don’t worry about what others may think of it, whether it makes them look greedy, lazy or whatever. All they know is that they want it.

After you have identified what it is you want, then you get to the Why. Why do you want all those things?

Again, kids have the upper hand here. They’ll be quick to point out why they want it all: mostly the fun they will have and the popularity it will give them. Ask an adult why they want something and you’ll enjoy watching the expression on their face. You’ll see them searching for an answer. Why would you want to be rich? Why would you want to quit working? What would you do if you no longer had to go to a job every day?

You may decide you want a bigger house than anyone in your family before you ever had. But what does that do for you? Would you sleep better? Would it make your life better? Or is it because you just love cleaning house all day? Whatever it is, it’s important that you know.

Exactly how you plan to achieve your goal is far less important, especially in such an early stage. Too much focus on the How early in the process can have a devastating effect. It could paralyze you. If your financial situation is so bad that you are actually below broke, achieving financial independence can seem so far fetched that reaching it appears impossible. You might sell yourself on the idea that it’s so far out of reach that you couldn’t possibly make it happen in this lifetime.

As much as that may seem true at the time, it doesn’t have to become your reality. However in order to get there you will probably have to overcome some serious hurdles. And for that to happen you need a reason to get up and take the necessary action. That reason needs to be strong enough to pull you through the tough times that inevitably will come. That reason is your Why.

History is packed with unbelievable stories of accomplishment. People facing seemingly insurmountable odds who overcame obstacles you wouldn’t believe. Individuals with relentless determination who decided to push on in situations where most people would give up.

Why is that so many people throw in the towel when things don’t go their way and only a small number of people seem to persevere? It’s not because they’re genetically stronger and it’s not because they’ve been dealt a better hand in life. What sets them apart is their Why.

That’s what keeps them in the game. Their Why is so strong that whatever gets in their way they will find a way to deal with it. They don’t have all the answers, but what they do have is an inner conviction that they can and will find them.

Working on your Why is one of the best ways to improve the chance of reaching your goals. So make sure that you know what your Why is. Find it and refine it over and over again. Make it so strong that achieving it becomes an absolute must for you and the How will magically reveal itself to you over time.

Why on earth would you want to run an event for your business? Events take a lot of organizing and publicity, not to mention the time you might not have and, depending on what you want to do, they can also cost quite a bit of money.

So is it really worth all that effort? In a word, yes!

An event is a fantastic way to get a whole lot of your clients and potential clients together so you can present to them all at once, saving you huge amounts of time and effort trying to reach them all individually – and even better, as the speaker, you come across as an expert in your field. Give your clients valuable information and they will talk about you and recommend you to others. Having an event is also a great way to encourage your clients to network with each other and see how they can help each other – and of course, it’s you they’ll thank for that opportunity.

Having your name on an event can be very good publicity for you and your business. If you pick a hot topic for your industry you could find yourself interviewed by the local press, on the radio, or even on television, all of which increase your chances of being seen as an expert by potential clients.

You may even make money directly from your event – either by charging admission, finding sponsorship or by having products to sell at the event. Regular events could produce a nice stream of new income.

You could generate yet another income stream just from one event by creating one or more products – you could video it, record it, transcribe it, turn the learning materials into an ebook or online course and sell it – the possibilities are endless.

So once you’ve decided to go ahead – how do you pick a good topic? You’ll need to look at what your industry is discussing right now and what they really want to know. There are lots of ways to find this out:

- Run an online survey – www.surveymonkey.com has a free option you can use to create some very useful surveys
- Call several trusted clients and find out what they’d like to learn more about
- Go to online forums on your subject and see what everyone is talking about
- Post on online forums and ask people what they might be interested in
- Look at the bestsellers on Amazon, Barns & Noble and Clickbank
- Look at the most popular keywords using a word tracker tool (www.freekeywords.wordtracker.com is our favorite free tool)
- Go to your trade association and ask what their members are interested in
- Look at competitor’s ezines and see what they are discussing at the moment.

Once you have your topic you’ll need to pick a date and an event format. What kind of event should you offer? Look at where your potential clients are based:

- If most people are in a particular area of the country, you should consider having a face to face meeting – this is always the best option if possible as you have much more chance to impress and to deal on the spot with any objections and questions, as well as providing that all important networking opportunity for your clients.

If your clients are scattered across the country or even across the world, you may want to look at running a telecast or web based event:

- With a web based event using a facility such as www.hotconference.com, you have the option of using the whiteboard, showing a PowerPoint presentation, directing people to view a website and seeing the attendees online via webcam – this is a great way to give a presentation but make sure you are practiced at using all the features of the software first and consider whether your clients are technically-minded enough to be comfortable with this, and likely to have equipment such as webcams and microphones.

- If this is your first time running an event, the easiest option is to run a teleclass, where you set a date and time and participants simply dial in and listen to you. Many companies, such as www.freeconference.com, offer this service and a quick Google search should bring up a long list of companies you could use.

If you choose a live event you’ll need to find a good venue. Look at cost, position – find somewhere central with good transport links and parking. Make sure you see the room you’ll be using before the event so you can see the space you have available and plan your layout. Check maximum numbers the room can hold for fire regulations, find out where the fire exits and fire alarm are and make sure there is disabled access.

You’ll need to market your event very well to get good numbers:

- Use your own ezine, local press and radio, the chamber of commerce and online forums.
- Write articles on your subject and submit them to article directories and other ezines.
- Tell your trade association and use online event listings.
- Go to networking events and take leaflets with you to advertise what you are doing.
- Ask each client to bring one potential client to get a free place
- Offer to speak at other events on the run up to yours with a taste of what people will get on the day.
- Find another non-competing company who are aiming for the same market and do a joint event

Don’t just rely on one way to get publicity – think of as many different ways as you can and use the best ones for your event.

You’ll need to be very organized and plan well ahead. Make sure you order any equipment you might need in plenty of time. Make up an event checklist and buildyourself a kit with plenty of spares – pens, training materials, extension cables, flip chart paper, gaffer tape, scissors, etc. Check with the venue that everything’s ready for you the day before the event.

The more value you provide, the more likely you are to be seen as an expert in your area and the more business you will get from your event and from word of mouth after the event as a result, so don’t deliver a sales pitch – your content has to be high quality, entertaining and informative or people will feel cheated, particularly if they paid to attend.

Once the event is over make sure you follow up and ask for feedback – it’s the best way to find out if the event was what your clients wanted, to get ideas for future events, and also a great to chance to chat to prospective clients to see if they’re interested in working with you. You can also collect testimonials which will help you if you plan to run events on a regular basis, and which you can also use to promote any products you develop from your event content.

In short, pick a great topic, plan everything carefully, publicize what you are doing as much as you can, and check everything is in place the day before the event. On the day, don’t forget to relax and enjoy yourself – if you are having fun, the audience will too. Lastly and by no means least, whatever you do, don’t forget to follow up.

Just by following these guidelines you could find yourself with any amount of new clients, lots of publicity and several new income streams.
Worth it? Definitely!

You have decided it is time to be self-employed and that franchising is the best route for you. Most business start-ups are financed. If you are planning on using financing, it is best to start looking at your finance options right away. Finding the right source, going through the application and approval process usually takes longer than expected.

Home Equity Loan: This is the quickest and usually the least expensive of the commercial-type loan options. If you have owned your home for awhile and have some equity getting a home loan is about a 30-day process. If you choose the line of credit loan, you can write checks as you need to pay for items. One thing you need to remember is to include your loan payment as part of you business expenses when figuring your projected financial statements.

Your Retirement Account: This form of financing is not widely known. There are companies that will legally convert those funds that are locked in a retirement account into an account to use for your new business. This option is not for those who are intolerant to risk since you are using funds allocated for your retirement and there is no guarantee that you will be successful and able to refund your account.

SBA Loan: The Small Business Administration has loans for financing new businesses. The SBA does not actually provide the funds, they provide the guarantee to the banks. They also create the loan programs and the criteria for the loan approval.

Keeping It In The Family: What if you do not own a home but you have great credit? How about using the home of a family member as collateral for your SBA loan? Of course, now you not only need to convince the SBA that you’re a good risk, you also need to convince your family member that you are going to be successful.

Asset-Based Lenders: If your business will include purchasing equipment and fixtures, an asset-based lender is an option. You probably will not be able to finance all your business expenses, like the franchise fee, but this is a way to reduce the amount of cash you have to invest at start-up. The assets of your business are the collateral for the loan. Be aware that the interest rate and costs for this option will be higher than a loan with real estate as collateral.

Sell Stock In Your Corporation: This option takes some extra effort because you need to convince potential investors that your business will be a big success. You will also have to hire an attorney to incorporate your business and make sure you are following the law in your sale of stock. Your business plan and projected financial should be very compelling, yet realistic, so that your potential investors will be excited to invest.

These are many of the common options for financing your franchise. It is important to include your choice of financing in your decision to purchase a franchise or any business.

You may have several ideas for a new business or only one. Before you start pouring your effort and money into an idea you need to see if it will stand up to some analysis. Try a SWOT analysis. This requires you to think about the Strengths, Weaknesses, and Opportunities your business will have, and the Threats it may face.

A high level of skill with a range of equipment, or a friend that is prepared to loan you some money would be strengths. If you have never run a business before that could be a weakness. A ready, enthusiastic market would be an opportunity, while several businesses almost identical to the one you are thinking of starting or a weakening economy would be threats. This type of analysis can show you if your business idea is viable and should encourage you to exploit opportunities and help you decide how to tackle threats.

Decide on your Unique Selling Proposition…

Why should a potential customer come to you and not a rival? Will you specialize in a certain area? You should be able to identify where and how you can contact your potential customers and have an idea of the demand for your type of service or product.

Write a Business Plan…

There are many versions and it seems every bank and business advisor has slightly different requirements. However every version should keep you focused on what you want to do with your business and the strategies to achieve this in a certain time frame. It should identify the services or products you intend to offer initially, and those you hope to expand into later. Remember the plan is a working document. If you miss deadlines you should be able to modify the plan to get your business back on course.

Once you have decided on the type of business you want to start do some research to see if there are any gaps in the local market. Find out your competitor’s pricing. You could get friends to ask for quotes from the competition, or use a more direct approach and have discussions with a local expert. Remember, a company could be a potential competitor or a potential joint venture partner. Perhaps you could approach them with an idea for a product or service that would complement theirs.

When setting prices do not immediately assume undercutting is the only solution. You need enough income to cover your overheads and a low price may give the impression that your skills and work have little value.

Cash flow is another important element in starting and running a business. Make sure you do not have to make too big an investment before you get paid. You should know how much you have to earn to at least break even.

After working through your business plan and giving cash flow a good deal of thought you should know whether your proposed business is viable.