January 8, 2009 by mrbizplan.

Venture capital funds tightened the purse strings in 2008 parting ways with 3.9 billion, a 50% reduction and the lowest since 1998.  Sarah Lacy discussing the future of VC with Reid Hoffman, CEO of LinkedIn .

Anecdotally, here in the upper midwest Angel Capital Firms are popping up all over the place with a half dozen stated in the last year. 

Donovan Wadholm
www.diybizplan.com

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January 7, 2009 by mrbizplan.

In the last two days Yahoo! Tech Ticker has featured two excellent videos featuring Paul Kedrosky regarding the state of venture capital in the valley and it’s effect on tech companies such as facebook.

Will these problems spill over in to the angel capital networks nationwide?  I’d like to know what you think?

Is Venture Capital Dying?

Has Facebook’s Value Plunged from $15B to just $500M?

Donovan Wadholm
www.diybizplan.com

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December 31, 2008 by mrbizplan.

It Was The Best Of Times, It Was The Worst Of Times…

When entrepreneurs start a new business they often have a nasty habit of paying little attention to whether or not the timing it right for that business idea.  Some will start their business either way, no matter what the data (or the bozos) say.  And some of those entrepreneurs are going to be successful in spite of the worst of odds.

But today’s economic uncertainties actually puts the question of timing front and center in the entrepreneur’s minds eye. 

So here are some things you should consider before starting a business in today’s brutal business climate:

It was the worst of times:

• Consumer’s are tightening their purse strings which will mean slower sales.  One of the most common mistakes a new business makes is over estimating their revenues, leading to a lack of working capital sooner than they can achieve their break even point.  During these less than robust economic times, entrepreneurs will have to make sure they are fully capitalized before launching.

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December 24, 2008 by mrbizplan.

As I wake to the sounds of the FM dial my mind starts to focus on life’s great trials.

“Time to get up kids & brush your teeth and please for once don’t fall back to sleep.”

“Hurry now get out of the shower the bus has gone and it’s tardy hour.”

In a rush as we fly in our car but the road is slick and traffic is at war.

Now it’s up to the office where bosses await with sullen faces at my tardy state.

In these times and on this day it’s more work, less pay, and a vanishing 401K.

As I bring my work day to a close the calendar tells me what it knows.

Black Friday and Cyber Monday have already past and online shipping is not that fast.

Now it’s off to shop and play ”bumper carts” at the twenty four hour big box mart.

Clean the house and keep the kids in line, the threat of Saint Nick will be gone in short time.

Like a tornado on this shopping spree, I lust after MP3s, DVDs, and HD-TVs.

Back at home my vision wont lie the whole family is coming and the hose is a pigsty.

Now it’s mission impossible to wrap in a bow while sneaking presents past those who can’t know.

The day is over and as I drift to sleep I think of bounced checks instead of counting sheep.

Now as I wake on this eve of the big day, the sounds of Christmas music began to play.

I hear the house groan from the bitter cold night, but my heart is warmed by glowing lights.

Feeling relaxed now my head is clear, I start to remember why I love this time of year.

The TV takes us to another time where Ralphie has only one thing on his mind.

Fun games, good company and holiday cheer, fill my heart and mind as night draws near.

Warm up the car and empty your glass, dress the kids in their best for Midnight Mass.

On this night nothing feels quite as right as singing Silent Night by candle light.

Happy Holidays!
Donovan Wadholm

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November 23, 2008 by mrbizplan.

With the economy the hot topic I thought I would take a break from discussing issues with small business and talk about investing, specifically in stocks.  Here are four sample headlines with links to stories about the current economic conditions, two for and two against investing in today’s current economic conditions:

Ignore the Stock Market Until February
Investor fear remains deep despite 1-day rally

Stock swoon creates chance to ‘buy low’
Why a Depression Is Not Likely

In addition to thousands of articles like these, the talking heads on CNBC, Fox Business News and their guests vacillate back and forth between “the bottom is in” and “financially, the sky is falling”, between: “the triple threat of Obama, Reid and Pelosi are the death of the stock market” and “good old government spending and more bailouts are what will help up avoid the next great depression”. 

The fact is the bottom pickers have been decimated in retest after retest of lower lows!

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October 7, 2008 by mrbizplan.

The big media is talking about big dollars, big companies, and big bailout packages.  Sub-prime mortgage backed securities, money market mutual fund savings, and now commercial paper have all been at the center of the conversation of the current credit crisis in the US and, in recent days, worldwide. 

To some, the credit crisis is a very real and immediate danger directly affecting their day to day work life and personal life.  But, to others it seems like a distant war being fought by some other society.  And, like any war on an abstract concept it is difficult to determine what affect any action has on “the market”. 

But what about small business?  At its most basic “cause and effect” form, the credit crisis has had several immediate effects on small business:
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September 26, 2008 by mrbizplan.

Recently at a small business conference in Chicago I attended a few different seminars on marketing, promotion and branding.  Being a self proclaimed finance geek, I find it is helpful to step outside of my natural habitat to broaden my knowledge base, and the best place for me to do that is by exploring marketing concepts. 

You see, marketing & promotion is my Achille’s heal as a business consultant.  Despite attending dozens of seminars, attending trade shows, reading books (actually I prefer audio books) on the subject and even listening to a few Zig Ziglar tapes I found at a garage sale…I still am not confident in giving advice on marketing. 

I think the problem is that finance is finite and marketing is…well, subjective.  Numbers never lie.  Certainly people can lie by changing the numbers to misrepresent the actual condition of a company.  But, anybody with an undergraduate level education in accounting knows that the practice, at best, is an estimate.
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September 17, 2008 by mrbizplan.

There is blood in the streets of America’s businesses both small and large.  On Wall Street, the collapse of financial institutions, the bailouts of Freddie, Fannie, Bear Sterns and now AIG.  500 point daily drops in the Dow Jones Industrial Average with investors fleeing to cash and US treasuries.  Sure there has been the rapid decline of the price of a barrel of oil, but that has been the effect of sinking worldwide demand (and strengthening the US dollar), which are ripples from the US economy swelling to tsunamis world wide.

Sound familiar?  Unless you have been under a rock it has been hard to miss.  Even The Daily Show’s John Stewart is taking a break from beating up Sarah Palin to focus on the economic forces playing out in front of our very eyes. 

On Main Street, here in the Red River Valley, community leaders and spending scads of time and money trying to convince citizens that all is well.  And, for the most part, they are right: 

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September 2, 2008 by mrbizplan.

About a year ago, I co-funded the start-up of a pizza restaurant, in a city near my own, with a friend I’ve known since high school.  At the end of this month that restaurant will no longer be mine.  Despite breaking even, we have decided that it is time to move on to better things. 

The end, as it turns out, will come one of two ways.  We have courted offers from several people who would like to take a crack at the biz and see what they can do with it.  Alternately, barring the transfer of ownership in the next 60 days, we will liquidate the equipment through local channels and on eBay (God help us with shipping the nearly 2 ton pizza oven). 

In any event, these options got me thinking about the “Universe of Investment Opportunities” that are available to all of us.  The long term objective for most business and/or property owners is the building of wealth.  The return on my original investment in the restaurant, be it the original amount or somewhat less (depending on the outcome), will need to be put to work.

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August 7, 2008 by mrbizplan.

I love listening to a good story…especially ones about entrepreneurs and their path to eventual success.    The woman or man who turned nothing into something, who did it quickly, and without the help of others, AKA the “rags to riches” story.

I think there is a yearning in every entrepreneur who hears these stories to identify with the subject and imagine how it could happen to them.  Like there is some magic formula to success, and if we could just do this one or two things…our business would take off, our work load would ease up and we would start living the good life we deserve.

There is a video on YouTube of famed story teller Ira Glass, host of This American Life, explaining what makes a good story.  According to Glass the first characteristic is (paraphrasing here) an anecdotal storyline; a sequence of events that leads to a destination, creating questions and suspense along the way.  The second characteristic is a moment of reflection or “ah ha” moment. 

This formula, or at least the first characteristic is used in most “rags to riches” story.  The second characteristic is usually more illusive.  For example, in the August issue of Inc. Magazine the cover story proclaims “Think Rich and Never Give Up“  subtitled “How Joe Cirulli turned his last 12 cents into a $17 million company”. 

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June 30, 2008 by mrbizplan.

Probably one of the most uncomfortable things a first time entrepreneur has to attempt is their first set of financial projections.  Frequently I hear the following:

• “Well…I don’t know how many people will buy from me!”
• “I just took a WAG (wild ass guess).”
• “This is so stupid…why am I doing this!”
• “How the hell am I suppose to know?!?”

To all of them I answer “YOU are the expert in the business you are starting and You have to set some expectations for the banks and/or investors.” 

As you may have heard, “Financial projections are part art and part science”. 

So what does that mean?  Read the rest of this entry »

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June 16, 2008 by mrbizplan.

I grow tired of hearing the opinion that business plans are not a necessary component of starting a business.  In Mike Michalowicz’s blog post Business Plans are OUT! Here’s the New Way… he expounds on the virtues of the “Three Sheet Strategy” in lieu of a business plan. 

In a nut shell the “Three Sheets” are:

1. A Prosperity Pan - which is like a mission statement and vision statement wrapped into one.
2. Quarterly Plan - A summary of what needs to be done in the next 90 days to work toward achieving your “prosperity plan”.
3. Daily Goals - a typical dashboard approach to ongoing metrics.

While I agree that the “Three Sheet Strategy” can be a useful addition to a business plan for “strategic” purposes, it in no way can replace a business plan. 

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May 29, 2008 by mrbizplan.

 In Free Money to Pay Your Bills! Or Maybe Not Part 1 we discovered how Matthew Lesko (and others) use word play and semantics to get you to buy their books believing you will obtain riches on someone else’s dime.  In Part II we will discuss what you really are buying when you purchase one of these grant guides. 

A distinction needs to be made between grants, loans you don’t have to pay back, financial assistance payments, and government contracts all referred to by various grant guides as ”free money”.  These words get thrown around a lot in Lesko (and others) commercials so much and sometimes so close together they seem interchangeable when in fact they are not.

Grants- There truly are grants available for small businesses.  And, I believe in fact the people represented on Lesko’s commercials genuinely received grants for the business they started.  But, the fact is these programs are far from prevalent in most communities.  And when they are available they are: a) limited in geographic scope and industry classification b) limited in terms of who can qualify for them and c) limited in how the money can be used.  Most of the grant sources are localized so if there is a grant for a person with a disability to start a widgit retailer in Podunk, Missouri they are not going to give you the money to start that shop anywhere else. 

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May 20, 2008 by mrbizplan.

Matthew Lesko is my nemesis.

You know the crazy guy on late night infomercials prancing around in his question mark suit screaming about “Free” money to pay your bills…or to buy something…or to start a business?

For years now this guy has made a fortune selling publications that are full of information that is free and available to the public.  There is nothing inherently wrong with charging for the convenience and reprinting cost of information that would have taken considerable time to gather and publish…that is not where I take issue.

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May 9, 2008 by mrbizplan.

This list reflects my experiences only, is based on no other research and is in no peticular order.

10. They had a well researched, well written business plan that backed the assumptions in their financial projections.

9. The business was an original idea or at the very least was different from the competition…they have several competitive advantages and/or served a niche.

8.  They underestimated their market size and demand for their product or service.

7. They implemented structured employee training and standard operating procedures before they opened their doors.

6. They excuted a marketing plan beyond a grand opening and for longer than a few months.

5. They created a strong brand with immediate name recognition.

4. They overcapitalized their working capital account…i.e. they had lots of cash on hand.

3. They delivered exceptional customer service before, during, and after the sale.

2. They were in the right market, at the right location, at the right time.

1. They have an unending passion for what they do.

Donovan Wadholm
www.diybizplan.com

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April 23, 2008 by mrbizplan.

The fact is that not all businesses will be successful.  Some have even heard that 80% of new businesses fail by the 5th year, although this is disputed by many and evidence suggests that the failure rate is closer to 50-60 percent.  Even so, there may come a time in your business venture when you start questioning wheather to stick with it despite the pain or quit, getting out before the pain gets worse.

I recently read a book by Seth Godin called The Dip: A Little Book That Teaches You When To Quit (And When To Stick) and the general idea behind the book is looking for the cues that should tell you when to quit and to push through knowing there is a better future.  The “dip” is that point, in whatever venture you are pursuing, where things get hard and looking into the future there is only uncertainty. 

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April 7, 2008 by mrbizplan.

Maybe it is a midwestern thing but lenders around here have a hard time just saying “No”.

Let me lay out a scenario for you:

1. Client comes into my office and tells me about the ultimate business opportunity. 
2. We discuss the costs and determine whether the client has the resources and qualifications possible to successfully launch this venture. 
3. Client completes market research and we write a business plan and financial projections based on sound assumptions.
4. Client goes to bank(s) and presents business plan.
5. Bank drags their feet, hems and haws, comes up with things that need to be fixed in order to do the loan.
6. Client fixes problem and fulfills requests.
7. Bank drags their feet, hems and haws…another list…repeat
8. Weeks pass with no forward motion.
9. Client gets frustrated and gos to another bank.
10. Client gets loan with no troubles.

This routine always costs the entrepreneur time and usually it costs some money, whether in the form or burned cash or opportunity cost. Now, somewhere between number 4 and number 7 above the scenario should have changed.  Someone, namely the commercial lender, should have said; “No thank you I am not interested in your request.”

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April 3, 2008 by mrbizplan.

Looking back at April 1st there were several occasions for someone reporting bad news to smile quietly and say “April Fools!”. 

Unfortunately, the only one to legitimately play an April Fools joke on me was my eight year old son, who upon arriving at school said he forgot his backpack only to reveal he put it on under his coat.  At least the spirit of the tradition was not lost on one person.

Upon arriving at work, I met with a business woman who, after two years in business, was struggling to gain a critical mass of clientele to keep her afloat.  I could feel her anxiety as she answered my standard litany of questions.  Everything I threw at her she had tried.  She had implemented a textbook marketing plan including standard advertising campaigns, community promotion, customer referral systems, even some guerilla marketing techniques. 

Despite these marketing efforts and running a tight ship controlling expenses, her clientel has hit a wall at just slightly over break even.  And, to make matters worse she is coming up on her slow season.  I was hoping for a quiet smile but it never came…  How about a short-term working capital loan to stem the bleeding?  Not the best strategy but with this person’s passion for their business surely they will pull through to profitability…right?

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March 28, 2008 by mrbizplan.

I spent the morning searching for a domain for a upcoming venture of mine.  This is probably the five hundredth time I have searched for a domain for one reason or another and my favorite tool for searching is the “whois” look-up on www.domaintools.com.  I have come to the conclusion that domain squatters are some of the lowest of the low. 

These people snap up thousands of the best domains and then use them for nothing other than to try to make a quick buck.  Now…obviously I am not against capitalism.  I own several businesses myself, so hear me out.

Starting a business is hard and getting exposure for your business is even harder.  Finding the perfect domain for your business can be a godsend and finding out someone else owns that domain, who is not even using that domain and has no intention to other than to charge you an exorbitant fee to acquire it, is a nightmare.  So the wary entrepreneur goes and looks for another similar domain and winds up with something full of dashes, dreadfully long, and/or full of uncommonly used words. 

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March 24, 2008 by mrbizplan.

I read an article the other day in the FM Business Journal about “Type A” business personalities.  The jest of the article was that, despite being worshipped by the business community, people who have a ”go getter” personality usually take on too many tasks and ultimate succeed at none. 

My first reaction was “That’s Not True!” but I decided to let the thought digest for a few days and see how I reacted after some time. 

You see, I have been accused of taking on too many tasks (mostly by my wife) in my daily life.  I went to my 10 year reunion last fall and when asked what I had been up to lately I responded with; “Not much…work and kids, you know…”  But, the truth was the answer would have been too long and there were too many things to explain. 

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March 21, 2008 by mrbizplan.

I have been a business consultant since 2002 and I work with about 200 clients a year. 

Over that time I have helped entrepreneurs complete countless financial projections for their start-up companies.  Over that same period of time I have developed a gut feeling for sales projections and typical expenses due to repeated exposure to different industries financial data. 

Restaurants are a particularly popular business to start because of the low barriers to entry (inexpensive, low skill, quick customer attraction, etc.) and I have worked with my fair share of wanna-be restaurant magnates. 

So when the opportunity came to start my own Delivery / Carry Our Pizza restaurant with a friend of mine I thought I had a pretty good handle on the business plan and financial projections.  Now that we have been open five months I can say that I had the opening three months right but the last two months have been about 30% off the mark. 

Looking back at the business plan I can see a few things that I didn’t expect:

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March 18, 2008 by mrbizplan.

Note:  I changed the settings for comments to “open to anyone” and it doesn’t require math problems anymore to make a comment.  All past comments were deleted before the changes were made…sorry to those who tried to share their opinions and could not.

Email me if you have trouble in the future.

Donovan Wadholm

 PS - I love www.logmein.com   Awesome free service to remotly access your computers over the internet.  I use it to check sales at our pizza restaurant every morning, when I forget a file on my work computer, to check my outlook on my home computer…it rocks!

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March 17, 2008 by mrbizplan.

I started reading Inc. and Entrepreneur Magazines monthly last year.  I like both magazines about equally but for different reasons.  I let my subscription slide on Entrepreneur so I am only going to speak to Inc. Magazine. 

Inc. Magazine has a case study featured every month that looks at a specific company’s business decision on some issue and then experts weigh in.  The articles usually entail some dire consequences facing a company and the decision made by the CEO to handle the problem.  These articles are always interested and informative but you never really find out if the final decision was the right one. 

 Starting in 2006 Norm Brodsky ran a nine part article entitled “The Offer” on on his attempt to sell one of his multimillion dollar businesses.  Norm seems perpetually out of touch with the average entrepreneur.  I believe his success has placed the problems he faces and his mentality on a different level.  For example the last article I read of his was about choosing a company to service a multimillion dollar policy.  But he is interesting to read none the less, kind of like the crazy old uncle that on rare occasions gives some true gems…but mostly you just find your self saying “Oh Norm…” 

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March 13, 2008 by mrbizplan.

I received a call this afternoon from a guy out in the New England area asking which program works best for raising investment capital.  After a fairly long conversation explaining the key differences between the programs I decided to recap them here for your use:

Ultimate Business Planner - Pros:Plug & Play Financial Projections, Comprehensive Narrative Outline, User-friendly Interface, Will help you create a business plan quickly even if you don’t have a lot of experience writing one in the past.  Cons: Tough to integrate current financial projections into program if you are an existing company, locked cells mean you can’t write spreadsheet formulas into the program, simplistic financial program = simplistic financial information reported.  Best Use:  New companies without complex financial projections - Start-up retail, service, restaurants, etc…who are seeking bank financing. 

PlanWrite Business - Pros: Again has an easy to use interface, plug and play financial projections, templates for different types of plans, loaded with additional resources.  Cons: Not as polished as some of the others, limited functionality for some key areas, only average presentation of finalized plan.  Best Use:Another good one for startups seeking bank financing. 

Business Plan Pro - Pros: # 1 business plan program in terms of sales, comprehensive program that will work for most companies, advanced financial projection program but not overly technical.  Cons:Most startups will only use a small portion of the program’s abilities, financial projection inputs integrated into the narrative sections are sometimes confusing.  Best Use:Existing companies needing a strategic plan, bank financing or possibly investment capital.  Startups can use but it can be like drinking from a fire hose.

BizPlan Builder - Pros: Cool features including multi-user access, pre-formatted outlines for different plan types with “starter text”, advanced financial projections, excellent features for those looking for private equity.  Cons: Dependant on Microsoft Office to run program, Complex and sometimes onerous financial projection templates, time intensive program to use.  Best Use:  New or existing companies looking for Angel or Venture Capital in need of comprehensive financial projections, investor driven templates and presentation outlines for raising capital. 

For more information and complete reviews of these products visit www.diybizplan.com.

Donovan Wadholm

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February 26, 2008 by mrbizplan.

After a year of accepting questions on behalf of our users I have decided to change the www.MrBizPlan.com blog to something else.  A few of the reasons include:

1. Dedicating more time to developing Capital Business Plan Software and other businesses I own.
2. A myriad of resources already available for answering your questions including websites such as AskJim.biz (who has a whole team of talented individuals in his “brain trust” available to answer your questions).
3. I might just use this space for what bloggers do…periodic ramblings of an entrepreneur and small business junkie.

I welcome your thoughts & input.

Donovan Wadholm AKA MR BizPlan
www.diybizplan.com

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December 31, 2007 by mrbizplan.

LSMURRAY Asks:

How would I go about putting my idea into a business plan without giving anyone that reads it the ability to (steal my ideas and) take me out of the picture.

Mr BizPlan Answers:

Thanks for the question. I am going to try to answer it from two different angles.

Protecting your idea from unscrupulous people can be put you in a precarious position. On one hand you would like to get the benefits of sharing your idea with others. These benefits can be invaluable as you venture into a new business. A new pair of eyes with a fresh view point can help you identify; problems with your assumptions, new opportunities that haven’t been explored, and/or just provide constructive criticism. But the idea of someone stealing your business idea and starting it themselves can be a very real and paralyzing fear.

Anecdotally, there is a story from my hometown, where two local university students wanted to open a “drive up only” burger joint. They took their idea to a local entrepreneur who made lots of money in various enterprises including car dealerships and showed him the business plan because they wanted to open it in one of his defunct used car lots. He asked to keep a copy of the business plan for “review” for a few days, which turned into weeks and a couple months later he opened a Hamburger Heaven in that very location.

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December 12, 2007 by mrbizplan.

ColinC Asks:

I have a business concept that will require me to raise equity from a private placement. Should I use a more complex business plan?

Mr. BizPlan Answers:

I guess that depends on what you are asking.

If you are asking: “Should I use a more complex business plan than Capital Business Plan Basic the free online business plan software offered at www.diybizplan.com?” - then my answer would definitely be - Yes!  You will need a 3-5 year financial projection, but it is a good place to start your business plan.

If you are asking me in general: “Does a business plan for raising equity capital have to be more complex than one that is written for, say, a bank loan.  The answer is “No”.  You will not necessarily need a more complex business plan for raising investor capital but one with a different focus.   

Generally, Investors care about three main things (in no particular order):

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November 28, 2007 by mrbizplan.

Happy Holidays!

I hope you have had lots to “give thanks” for this year and are looking forward to a very merry (insert religious holiday here)!  The new year is just around the corner…which means lot of people starting new businesses.  There is something about a new year that excites the entrepreneurial spirit in all of us.

It was January of this year that I launched www.DIYBizPlan.com, www.MrBizPlan.com and the DIYBizPlan Network.  It has been a promising year filled with both opportunities and roadblocks.  Looking back over the last 11 months, I wanted to share a few things that I have learned about launching a website :

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October 13, 2007 by mrbizplan.

richhall asks:

I have read that getting new customers in the pipeline is the most important goal for companies.  I have also read that client conversions and up-selling are imperative to growth.  Which is true?

Mr BizPlan answers:

You questions surrounds two major philosophical mind sets among marketing experts today.  One camp believes that top line growth can solve all of a companies problems and that means making investments in branding you company and heavily marketing your products/services.  The other camp believes that concentrating on converting more of your leads and then working selling a higher average ticket, whether it be through up-selling, packaging or ancillary products. 

I believe that both are important…but should be used at different times in a company’s life-cycle.  When you are a new company with a limited customer base then loading up the top of the funnel is where you should concentrate your efforts.  Marketing experts have determined that a client will have to see or hear your ad about seven times before they respond to it.  This means that new companies have to invest a large amount of their budgets into marketing and branding efforts. 

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September 5, 2007 by mrbizplan.

YINGHAUNG AsksI am a small business owner in different state where I want to do business. I want to start a business in a neighboring state. Can you help us with some information?

Mr. BizPlan AnswersLets say that you want to register your business in North Dakota. You can start the registration process by contacting the secretary’s of state office.  Their website is www.nd.gov/sos  The following is information regarding foreign corporations provided by their website:

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August 30, 2007 by mrbizplan.

It’s amazing how trying to make one simple upgrade to a website can turn out to be a giant mess.  For a reason that could not be determined by our hosting company, 1and1 a SSL certificate could not be applied to www.capitalbizplan.comso in lieu of moving the whole online software to that domain, we opted to keep it on DIYBizPlan.com and provide SSL protection to the online software links and program pages.  Despite this upgrade causing some small image display issues it was completed successfully and your business plan information is now hosted over a secure connection. 

That said www.capitalbizplan.com will now go back to forwarding to www.mrbizplan.comas it did before which is also fine because Yahoo / Google / MSN complex are pretty slow to update their links.

Thanks for your patience in this upgrade.  We hope you appreciate the value we place in the privacy of your data and the ongoing upgrades we are making to the software.

Work is progressing on my other venture (the restaurant) and thanks to the guys and gals at www.pmq.com and their think tank for valuable information on the pizza industry.

Mr. BizPlan

PS - www.diybizplan.netis now up…although not fully complete.  This will be the central portal for the entire DIYBizPlan network (which is growing rapidly).

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July 26, 2007 by mrbizplan.

We are completing the final updates on the beta version of Capital Business Plan Basic and with that we will be moving the program to a different domain name with Secure Socket Layer (SSL) Protection. 

So…guess what domain was picked to host the free planware?  That’s right www.CapitalBizPlan.com - which works out because we acquired www.MrBizPlan.com to host this blog (why we didn’t think of this in the first place is beyond me).

For about one week the old domain will forward you automatically, then…no more.  So update us in your favorites and blogrolls!

Mr. BizPlan
www.diybizplan.com

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July 24, 2007 by mrbizplan.

eWalcot asks

I am considering a micro-business making and selling a product from home.  I know there is a fine distinction between a hobby & business, but do I need a business license or tax registration certificate before I consider this endeavor?  Do I also need a seller’s permit? 

Mr. BizPlan Answers

I will try to answer the question as best I can…let me break it up into parts:
 
1.  I know there is a fine distinction between a hobby & business, but do I need a business license or tax registration certificate before I consider this endeavor? 
 
No…you do not need a business license or tax registration to do what you are doing.  So long as you are doing business under your own name (not a “trade” name or “doing business as” name DBA) then you can use your social security number for business purposes and file your taxes using a Schedule C or Schedule C-EZ at the end of the year under your social security number. 

If you are using a name other than your own you can file a trade name registration with your state’s secretary of state office.  Either way you can use your social security number to file taxes.  Most people do not like having their social security number floating around these days so applying for a EIN (tax id) number is recommended, even for sole proprietors.  

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