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What financial and management advise will you give to someone planning to start a small scale business ?

The most important thing to do is to write everything down. Make a solid business plan. Include information about marketing,finance and how your company operates. Think of every possible scenario that could affect your business. Positive and negative. Think about political,economic and technological changes and how this applies to your company.

Your financial plan needs to be on point. Investors don't necessarily look at your idea. They look at the numbers! It is most likely you will not know everything so go look for a good accountant. They are key when building a financial plan. 

The best advice I can give you is to surround yourself with people who know a lot more about things than you. Let's take a loot at my personal situation. My dream is to start a business. So I need to make a good business plan. During every step making this plan, I will ask advice to a lot of skilled people. One of my friends is a marketing expert. Perfect! I already asked one of my evening school teachers to look into my business idea. Perfect! My idea consists of a smartphone app so who do I think of? My brother. He's a specialist in programming and IT. Perfect!

Don't be afraid to ask advice to people. You will need feedback on basically everything you will do. It is essential if you want to improve your product but also they way how you deal with your employees.  Accepting and handling feedback will eventually lead much more likely to success. 


When I was in college my major was Computer Information Systems.  As I started taking my classes I needed to pursue a minor, but nothing sounded all that interesting to me.  I finally decided to follow the Management path for my minor.  The main reason for this was the same reason a lot of other people chose that minor: It required the least amount of credits to complete it.

That being said I am very glad I took the classes.  I learned a lot from them and one of the best classes I took for that field of study was on Small Business Management.  

It has been 20 years now that I was in college, but one of the things that I will always remember from that class is that if you are going to start any kind of business, big or small, you need to make sure you have a business plan.

Most good business plans are going to have seven components.  

Executive Summary - This is a short synopsis of what your business is going to be about.  If you look online a lot of sites will probably call it an elevator pitch.  This means if you were in an elevator and you wanted to get them interested in your business so they would invest in it, what are the key points you would make before they get off the elevator at their stop?

Business Description - This is going to be a more in depth section where you describe your company.  This section is where you might answer any questions you can anticipate the investor asking.  What is your business model?  Who is your customer base?  How do you plan to grow?  Sustain that growth? etc.

 Market Analysis - What does your competition look like? How do you think you will fit in amongst the competition?  Can you stay competitive?

Organization and Management -  What will the hierarchy be of your business be like?  Are you bringing in any key players that you want to highlight?  If you are going into sale and you were able to snag the top retail associate from a local store, you would want to highlight that so the investor knows you have some superstars on your team.

Sales Strategies - You want to generate excitement from your investors and you want them to know they aren't putting their money into something that is going to fail.  You need to have a plan for how you are going to raise your capital and how you are going to manage that capital once you have it acquired.  What are you going to do to promote your business and how does that fit into your budget.  What does an annual budget look like for your business and how are you going to advertise?

Funding Requirements -  This one ties in really closely with number five.  This is going to be the section where you actually put a dollar amount on what you need to make your business happen.  This is also where you detail what you expect the profit margins to be.  Many people will advise you to consider both sides of the coin in this section.  Establish a best case scenario and a worse case scenario and how you are going to handle each of them.

Financial Projections - Your business plan is a living document(which means it may change constantly) in this section you will want to talk about the funding you have already acquired and any additional funding you are going to need.  If you are looking to expand your business, make sure you cover any financial successes your existing business has achieved here. What do you expect your business to look like in three years?  Five years?  Ten years?  This is where you lay it all on the line.

If you go into a bank or a financial institution looking for money to start your business the first thing they will do is ask to see your business plan.  If you don't have one, they will probably show you right to the door.  The business plan is your road map to success and the amount of time you put into it will reap dividends when you finally do start your new business. 


I would advice the person to have a business pla first. This would be the guideline and road map to their business and its direction that the owner would wanna stir his/her business to. Having at least six months of cash reserves to buffer any negative cash flows when doing business. When the business just starts out there are lots of expenses and it may take some time to even breakeven or make a profit.

Get a partner who is able to share the business so there is enough money for the business to run and the risk is diverted rather than having the business owner take it all. Then there is a need to read more books about entrepreneurship and business to get an idea of how business can be run smoothly and what are necessary risk associated.

If it's a business which is involved in retailing, don't stock too much or else it would take a longer time to clear our inventory. The products sold by companies are usually trial and error and no one would really know what sells and what won't.


Competitors are hungry. They are unseen but they are present. Once you run your business, if you manage to be sucessful, you will see some photocopiers who come and try to set up something similar.

Financial preparation

Well, do not just dump in cash to think that cash is king. I have seen many business spending lots of cash into their business only to shut down in a couple of months. Easy to open but hard to maintain.

Always have a budget and clear cut of goals and the plan ahead for the business and ways to run by having a business proposal and plan.

Never give up and always gather feedback

Customers are important. New customers are always hard to get. It is important or satisfy current customers who are in the company normally and always try your best to satisfy those customers. Word of mouth will spread and business grows. Always father feedback on what the customers want in your business as it is really important. Customers are the ones who feel satisfaction or dissatisfaction over the products or services that your company provides.

Stock inventory lesson

Don't stock up too much of the same product if your opening up a business that maintain sells products. It is hard to constantly sell product d that would constantly be hits. Usually after a cycle, products tend to get old and u sellable.


Prepare for failure.

Most businesses do fail within a year or two.

Do your market researach, it's free to poll 500 random People on the street.

Use all the network you have to your disppsal. Pitch it to all Your contacts.

Prepare to operate on a negative income for a good 6 months.

Don't make more product than you can sell in a month.


Starting a small scale business is not bad at all. But certain things must be considered in other not to be on the long run.

First of all, What is BUSINESS?

BUSINESS can be defined as a process whereby goods and services are been rendered to others who wants or need them.

(Author Unknown).


A BUSINESS is a legal entity separate from its owner, that exist to offer a satisfying services in exchange for money or generating profit and creates wealth for the owners.

(Author Unknown)


1. The question "WHY"

So many people venture into businesses without asking themselves WHY they need to go into such business. You don't venture into a business because people are doing it. You must have a different perspective all together in other not to regret your actions.


As a small scale business starter, you must possess some skills. Such as Leadership, Optimism and Faith, Passion, Vision, Time management, Marketing negotiations etc.


This is simply the application of your skill in the business you want to venture.

You must be willing and always ready to apply your services with all alacrity.


This is just the ability to acquire knowledge or skills. You must not dwell on that which you already know. Always seek for improvement.

5. You must be a decision maker. If you don't make decision others will do it for you. And you might end up with a costly one.

6. You must be a person who's committed to hard work without slumbering.

7. Passion and Creativity must be your watchward. You must love what you do and and be bound to brings new things.

8. You can then choose your small scale business name.

9. Finally, there should be capital set aside for the business.


1. You have to deliver more than customers expectancy in terms of quality.

2. Work consistently.

3. Be innovative, do attractive things.

4. Your actions must be guarded with discipline.

5. You must always be ready to sacrifice your time. You just have to be willing.

6. Don't be a slacker when things are/becoming tough or difficult. Never relent!


Owning a BUSINESS is not for everyone. And not every person is made out to be an entrepreneur.

(Author Unknown)...


There are many business needed a proper management and some good financial condition like to start a dairy farm, shop, etc. There are some advice i would like to give on business management and financial.

1) Planning should be good upto long term

2) Be prepare for hard times too if you are in business

3)Hear of your mind not for heart

4) Have some budget for future planning

5)Make regularly updates of your business

6) Think about growing not about getting failure