Small Business Questions & Answers.
Henry Lopez answers listener’s small business questions.
This is a special Listener Small Business Question & Answer episode! We have gathered some of the great questions our listeners have submitted through the Listener Survey, and Henry answers these questions on this episode of the How of Business podcast.
The questions answered on this episode span a range of topics, related to starting and growing a small business.
Small Business Questions & Answer Index:
- [1:35] – How to estimate overhead cost and operation cost when starting a business with no prior experience.
- [7:07] – How do you know when and how to prepare for hiring your first assistant/virtual assistant/employee to support a solopreneur?
- [12:25] – How does a startup craft a 3-year P&L that doesn’t lead to over estimating sales?
- [17:00] – Paths to acquiring small businesses that are not for sale. How to approach an owner and ways to get them to consider your interest in buying their business seriously?
- [21:50] – Tips and tricks for staying focused on the most important tasks?
Small Business Questions & Answer Summary and Related Resources:
- Question: [1:35] How to estimate overhead cost and operation cost when starting a business with no prior experience. Where can you find this information?
Answer Summary:- Research – including online research to potentially find industry data or estimates.
- Ask other small business owners.
- Industry Associations or Groups may offer some information to help you estimate your overhead expenses.
- A small business coach or mentor may be a source of information.
- Get quotes if possible for expenses such as liability insurance, and rates for overhead expenses such as lease rates for commercial space.
- Estimate expenses such as labor by researching the typical market wages for the positions you will hire and calculate your labor expenses plus 10% or so for payroll taxes.
- Financial Projections – complete your financial projections to gather your research data and calculate overhead costs for your small business.
- Related Resources:
- Question: [7:07] How do you know when and how to prepare for hiring your first assistant/virtual assistant/employee to support a solopreneur?
Answer Summary:- Compile a list of tasks that are of lower value – the repetitive tasks that could easily be delegated to someone else. Identify how much time you are spending on those tasks on a weekly basis.
- What is your opportunity cost? What else could you be doing with that time that would be more valuable or profitable for your small business? Do you not have enough time for revenue generating activities because you are bogged down by administrative or low value tasks?
- Consider outsourcing tasks like bookkeeping or marketing.
- Calculate the expense of a virtual assistant.
- Can you currently afford the additional expense of an employee?
- What revenue level would you have to achieve to be able to afford a new hire?
- Related Resources:
- Question: [12:25] How does a startup craft a 3-year P&L that doesn’t lead to over estimating sales?
Answer Summary:- Follow a structured and rigorous approach to creating your financial projections.
- Get help with creating and validating your financial projections. Get input from a Mentor, Coach, CPA, other business owners.
- Related Resources:
- Financial Projections Workshop
- Episode 395: Financial Projections for Small Business Startup
- Question: [17:00] Paths to acquiring small businesses that are not for sale. How to approach an owner and ways to get them to consider your interest in buying their business seriously?
Answer Summary:
- Attempt to make a connection with the owner of the small business you are interested in.
- Try to establish a friendly relationship with the owner by becoming a loyal customer, or perhaps inviting them to lunch or coffee to meet them and discuss business.
- Connect with them in other social or business environments like a chamber of commerce, networking group, or other civic association or group.
- Network with others in the community or industry who might make an introduction.
- Related Resources:
- Question: [21:50] Tips and tricks for staying focused on the most important tasks?
Answer Summary:- Develop your Time Management skills. These are habits that require discipline.
- Plan your Week: on Sunday evening or Monday morning, take time to plan your week.
- Use a calendar tool to schedule all your appointments and other commitments, including personal (exercise, thinking time) and family commitments.
- Use Time Blocking – block out time on your calendar (1-hour or 2-hour blocks of time) to work on your most important tasks or projects.
- Prioritize the top 3 most important tasks or projects for the week. These are the things that are most important to your small business.
- Related Resources:
Other Podcast Episodes:
You can find other episodes of The How of Business podcast, the best small business podcast, on our Archives page.
Sponsors:
This episode of The How of Business podcast is sponsored by Zinch – fast and easy small business financing.
Special Offer:
Zinch is waiving application fees for The How of Business podcast listeners – a $250 value!
Just visit the Zinch website to learn more.
More about Zinch:
Zinch has been providing fast and convenient financing solutions for small businesses since 2004.
Unexpected expenses can pop up anytime in a small business…
Equipment breakdowns, license and permit fees, customer payment delays, and many other unexpected expenses for which you may not have the cash on hand to cover.
And If you don’t address this cashflow issue quickly, it could make or break your business…as Henry Lopez has shared many times on this podcast, running out cash is one of the top reasons businesses fail.
If you require a loan to cover these unexpected expenses, the traditional loan process is too slow to be of any help.
This is where Zinch comes in as the financing solution you need.
Zinch is a direct lender that makes financing fast, simple, and built around your needs.
If you’re generating over $10,000 in monthly revenue and have been in business for over 6 months, Zinch can fund up to $250,000 in less than two days!
The process is simple and quick – you answer some basic questions about your business and may receive a pre-qualified offer in less than 5 minutes, without affecting your credit.
Once approved, one of Zinch’s loan advisors will review the lending options and help you choose the best one for your business. After signing your loan documents securely online you will receive funds into your bank account within 24 hours! I encourage you to see how much financing you can get with Zinch!
And right now, Zinch is waiving application fees for The How of Business podcast listeners – a $250 value!
Just visit the Zinch website to learn more.
Loans made or arranged pursuant to a California Finance Lenders Law license.
We have received compensation from this sponsor partner. We only accept sponsorships from companies who we believe provide products and services that are valuable for small business owners.