Learn from My Recent Mistake

Encore entrepreneurs and small business owners must limit their cash flow dependency on factors they cannot control. The sudden reversal of fortunes in the oil industry of late demonstrates how quickly a seemingly robust sector of the economy can suddenly fall upon hard times.

This is why its imperative for encore entrepreneurs and business startups to diversify their customer base, so that they are not excessively dependent on one segment of the economy doing well. Unwittingly I made that mistake myself by allowing too much of my new business to be vulnerable to the downturn in the oil patch.

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Fullly Vet Your Investors’ Financial Capacity

if you’re relying on investors, vet them carefully before you bring them on board. Be sure that their commitment to your company and their personal financial capacity is adequate to see you through the unexpected. If there’s any question that their commitment and capacity are high, you probably want to look elsewhere for your capital.

On the other hand, if you are self-financing your startup, be certain that you yourself have the resources to cope with major unexpected expenses in getting your business underway. Always remember that startups most frequently fail, not because they cannot earn a profit, but because they run out of cash.

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Schutt Vision | Behind the Scenes of a Startup Rollout Success

Last week two of my clients launched a product which was immediately the buzz on sports blogs and news sites all over the web. This week television shows are calling, asking for interviews.
The product, called Schutt Vision, is the first point-of-view camera that is small enough, light enough, and rugged enough to be incorporated into a football helmet and provide fans with an opportunity to see the action from the perspective of players on the field.
Any business startup can profit from four lessons taken from the rollout success of the company that created the helmet camera.

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Revenue Goal Feasibility Tool

Without a history of sales, a new company has little data with which to forecast potential income. It’s challenging, therefore, to know if revenue projections are realistic. To help resolve this issue, I’ve developed a proprietary Revenue Goal Feasibility Tool. It’s specifically designed for businesses which have one or two owners and which receive their income primarily from services which at least one of the owners delivers. Businesses which market both products and services can also use the tool for establishing realistic revenue goals for the service side of the business.

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Which Accounting Method To Use (Part 1)

The IRS gives small startups considerable latitude in their choice of accounting methods. Part 1 of this tutorial lays out the IRS guidelines governing which method your startup is free to use. It then contrasts the way income and expenses are reported in the two primary methods, cash accounting and accrual accounting.

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