A simple, inexpensive home based business like NHR Products is a breeze to run, but if you are thinking of starting a more complicated and expensive business, there are many factors you need to consider…

An essential first step to improving profitability is to step back from the day to day business and analyze the activities and financial accounts from a third party perspective. Accurate and up to date accounting records are a prerequisite to the options available since the accounting records place a value on the trading history.

If financial records are not up to date the next step would be update the financial accounts by either manually recording the transactions or using accounting software to produce the financial accounts. For small businesses this is often a problem as accounts are often left until the last minute and produced for tax purposes. Simple bookkeeping spreadsheets are adequate for many small businesses while medium sized businesses may adopt more sophisticated accounting software packages.

List the strengths and weaknesses of the business examining each activity from sales and purchasing, running costs, employees and financial control. Use the financial accounts to place values on the different business activity areas. This list should be as detailed and extensive as possible as it is through this listing that plans of action will be developed and emerge as a business plan.

Here is a sample check list of items to review:

Profile
- Base Location:
- Registration Fee:
- Minimum Order:
- Payment Options:
- Shipping Options:
- Return Policy:
- Validity:

Products
- Quantity:
- Unit Pricing:
- Package Sizes:
- Category:

Ratings
- Overall Impression
- Product Prices
- Product Quality
- Product Quantity
- Reliability of Service
- Impression of Website