Thought for the Day  
"The people who get on in this world   
are the people who get up and look for   
the circumstances they want, and, if   
they can't find them, make them."  
George Bernard Shaw  
  

A.I.M. Contents  
1) Feature Article: Plan to Succeed!  
2) We pick a winner once a week!  
3) A.I.M. Marketplace   
4) Feature Article: The power of a personal referral!  
5) It now costs less to reach our subscribers!  
  

1) Feature Article: Plan to Succeed!  

This article continues a series in which we discuss the main reasons   
for small business failure. According to a report by a major   
international bank, most small businesses fail within their first   
year. If you have poured much time and energy into our businesses,   
then it will help to be aware of the major pitfalls.   

The top nine reasons for business failure are listed below.  
Unsurprisingly, they apply to as much to online businesses as to  
traditional bricks and mortar operations. Beware!   

Why Businesses Fail  
1. Poor choice of location  
2. Taking cash from the business too early  
3. Not moving with the times  
4. Under/over pricing  
5. Over-optimism  
6. Not pursuing accounts bad debts early enough  
7. Health problems of the owner  
8. Lack of research  
9. Partnership problems  

In previous issues, we discussed the following:  

Poor choice of location  
http://www.inetexchange.com/articles/bus1.htm  

Taking cash too early, and moving with the times  
http://www.inetexchange.com/articles/bus2.htm  

Pricing problems  
http://www.inetexchange.com/articles/bus3.htm  

Bad debts, and avoiding typical health problems  
http://www.inetexchange.com/articles/bus4.htm  

In this article, we will discuss the problems of over-optimism   
and lack of research. In many ways, these are two sides of the   
same coin. Over-optimism is usually caused by insufficient   
research - and over-optimism leads one to ignore any evidence   
that disconfirms your expectations. It is too easy to get   
unrealistic about the potential of your business idea and to   
rush into investments, or expenditures, that you will later   
regret.   

If you have a good idea, then you owe it to yourself to spend   
a little time doing some research and making realistic projections.   
Whether you are starting a new business, or running an existing one,   
the principle is the same: you need a business plan.  

What is a business plan?  
Put simply, a business plan sets out your company's plans, and shows   
how those plans will be achieved. It will include a concise   
description of your company, the products and services you sell,   
your customers, competitors, and financial forecasts. It will be   
realistic: explaining your business's strengths and weaknesses.   

Why do you need a business plan?  
You might think that you only need a business plan if you need to   
raise external financing. It is true that a business plan is essential   
if you need to borrow money from a bank, or raise money from investors,   
but that is not the only reason for writing a winning business plan.   
The main reason is you!  

A good business plan will help you:  
1) set clear objectives for sales, growth, costs.  
2) know if you are on target, and what you need to do if you are not.  
3) keep you on track, enthusiastic and focused on your objectives.  
  

Writing a business plan is not as boring or troublesome as you might  
think. Most business owners find that it is an excellent exercise, and  
extremely helpful. Too often people get caught up in the day to day  
running of their businesses, and do not spend enough time considering  
their overall plan. Preparing a business plan can be a very enjoyable  
break from the sometimes mundane operational duties.  

You will find that it is really not that difficult. There are a number  
of good books and software packages available to help you write a  
winning business plan. I have listed a few of them below. A good book is  
essential, but you don't have to wait until you have it in front of you.  
There are a few things that you can do right now to get started.   

1) Think about the background and history of your company. Write a  
general description of your business, how long you have been in   
operation, and some basic financial details.   

2) Write a few paragraphs about the nature of the products or services  
you offer. Use language that a non-expert will understand. What do  
you sell? How is the product used? What need does it serve?   

3) Think about your competitive position in the market. Write out   
answers these few basic questions: What are the advantages of your  
product (cheaper, better quality, unique features, etc.)? Are there  
any disadvantages? (be honest! :) Who is your competition? Describe   
their products, advantages and disadvantages.   

4) Next think about your customers. Write a description of your typical   
customer. Who are they? Where are they? Why do they buy? When do   
they buy? Who makes the decision to buy?   

5) Write a clear statement of your business objectives. What are your  
goals, in terms of sales, profits, traffic to your website, etc.?   
Set some objectives for 3 months, 6 months, one year, and two years.   
Start by thinking about your one year goals, and then work   
backwards to formulate the benchmarks you need to reach at 6 months,   
and 3 months from now.   

These are just a few of the considerations that need to go into a  
powerful business plan, but even these five points will get you   
started. Spend some time on your business plan; you owe it to yourself   
and your business.  

Resources:  
Adarus Business Plan   
http://www.netsales.net/pk.wcgi/zap/prod/1186540-1  
"Develop a business plan with five years of financial projections in   
an afternoon. Designed with the help of entrepreneurs and business  
instructors. Step-by-step wizards and one-step tools make the   
creation of a business plan so easy! Great for start-ups and   
existing businesses."  

Smart Business Plan  
http://www.netsales.net/pk.wcgi/zap/prod/1184434-1  

Business Plan Pro  
"Business Plan Pro is a standalone planning program for start-up and  
established businesses."  
http://www.netsales.net/pk.wcgi/zap/prod/1183796-1  

And do a search for "business plan" at Amazon.com. They have a   
number of good titles.  

--------------------------------------------------------------------  
Paul Needham  
paul@linkmedia.com  
LinkMedia Communications Inc.  
http://www.linkmedia.com  

Join in on the discussion. Comment on this article at the Zap Cafe:  
http://www.thezap.com/cafe/  
--------------------------------------------------------------------  

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WOULD YOU INTRODUCE YOUR BUSINESS TO THE WORLD IN YOUR  
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THE FUTURE IS HERE!  
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INFORMATION IS POWER!  
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1-3  
  

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Increase Business By Accepting Credit Cards  
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1-1  
  

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Internet Business made Easy. Free Details  
Check out this fully-functional on-line business opportunity at  
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PRE-APPROVED Merchant Accounts-Accept Credit Cards for Your Products or  
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******************  
  

WOULD YOU INTRODUCE YOUR BUSINESS TO THE WORLD IN YOUR  
UNDERWEAR? Tacky backgrounds and cheap animation's are out -  
content-driven web sites and a sense of community are in.   
Let us help you build YOUR web community and attract quality, repeat  
traffic to your site! Bad Dog Design offers full service web development   
to select clients - what can we do for YOU?  
http://www.baddogdesign.com mailto:info@baddogdesign.com  
3-3  
  

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4) The power of a personal referral!  

We have used the power of a personal referral many times in the  
A.I.M. Ezine and everytime it has out-pulled and out-performed  
any other type of advertising.   

I'm talking about the personal recommendation.  

If you have a product or service that you market and you have  
had good results using the product or service then you are in  
a position to give a personal referral. Tell others about your  
experience with the product, what it did for you and why  
it is so good and you will notice an increase in sales.  

Throw in an unbiased testimonial or two from customers and  
you will have a winning formula for building credibility  
and customer confidence.   

You can see an example of a personal referral we use by sending  
email to <mailto:2k-sales@rapid-reply.com>  

5) It now costs less to reach our subscribers!  

The cost to reach a thousand of our subscribers now  
costs less. Our prices are the same but there are more  
subscribers reading the A.I.M. Ezine!  

As of Tuesday, July 14th, there are 36,300 readers subscribed  
to A.I.M.  

Order your space today.  
https://secure13.virtualisys.com/linkmedi/mailer-order.htm  

The A.I.M. mailing list is growing at lightning speed. And this   
means more opportunity for profits for you!  

Why advertise in the Active Internet Marketing (A.I.M.) newsletter?  
1. Because *your* target market reads the A.I.M.  
2. Because there is no better, cost-effective way to reach your   
audience.  
3. Because advertising in the A.I.M. pays off!  
http://www.inetexchange.com/inet-mailer.htm  

But, don't take my word for it. Read the testimonials:  
http://www.inetexchange.com/inet-mailer.htm  

Customer Feedback!  
------------------  
We want to hear from you! Do you like what you see in   
the A.I.M. Ezine? Had good results with your ad? Do you  
like the format? Send your comments, good and bad!  
(mailto:testimonials@inetexchange.com)  
  

A.I.M. Ezine is written and published by  
The Inet Exchange  
http://www.inetexchange.com/  

Managed by: Kevin Needham  

Have a great week, and remember:  

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