© 2009 Dream Merchant

Dream Merchant • 2309 Torrance Blvd. #104, Torrance, CA 90501 (310) 328-1925 email: Jkm316@aol.com

Kids Kreative Korner

 

CREATING A STEADY INCOME

Here Are Some Ideas for Growing Your New Business.

By Bonnie Drew

When most young entrepreneurs picture success for their business, they picture lots of customers, lots of sales, and lots of money.

When setting your income goals, keep in mind that growing a business is much like growing a garden. First you plant the seeds, then little plants come up, then you have to water and take care of them, and finally one day you're able to pick the vegetables and enjoy your labors.

Businesses also go through stages of growth. There will be times when you won't be able to take money from the business for personal expenses. As you read the following descriptions of the phases of business, ask yourself two questions-- (1) How much profit can I expect at this stage? (2) What is the wisest way to use the money?

The stages of business can include:

1. Research Phase--Expenses may include taking a class, buying books, postage, phone, and photocopying. There is no product to sell and no income. You operate on savings.

2. Start-Up Phase--Having faith that sales will result, you spend money to begin the business. If the start-up money is borrowed, you will have to pay it back before you can take any income for yourself. The business is not yet making a profit.

3. Break-Even Point--This is a happy day. This is the day income from the business starts covering all expenses. You may not be making much profit, but you are no longer operating at a loss.

4. Early Growth--Sales are increasing gradually and some profits are seen. However, the money almost always goes back into the business to buy more equipment or supplies.

5. Steady Growth--You've discovered marketing strategies that work, and new customers are being added weekly. The business is supporting itself, and you are now able to take some money out for personal use.

6. Maturity--You've developed a list of regular customers and are continuing to add new customers through referrals and marketing efforts. Business operations are mostly smooth, and you have money to both reinvest and spend for personal use.

7. Decline--Market changes or changes in your personal life decrease profits from the business. You either decide to take the business in a new direction and go back into a stage of growth, or you let the business phase itself out.

Growing a business requires constantly asking yourself, What's next? How can I improve? Where do I expand? Successful entrepreneurs don't sit and wait for something to happen. They set goals and go after the things they want.

Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).

Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com

     

         

            

               Previous
            
            

               
Index
            
            

               
            
            

               
Idea Help
            
            

               Next