Overview
A psychic business involves offering services such as tarot readings, astrology, mediumship, and other forms of spiritual guidance. These businesses can be run in various ways, including in-person consultations, online sessions, or even over the phone.
Here are some key points to consider if you're thinking about starting a psychic business:
1. Skills and certification: while not always required, having certifications or training in your chosen psychic field can add credibility to your services.
2. Business plan: like any other business, having a solid business plan is crucial. This includes defining your target market, pricing strategy, and marketing plan.
3. Legal considerations: ensure you comply with local regulations and obtain any necessary licenses or permits.
4. Marketing: building an online presence through a website and social media can help attract clients. Word-of-mouth and client testimonials are also powerful marketing tools.
5. Ethics: maintaining ethical standards is important. This includes being honest about your abilities and not exploiting vulnerable clients.
For more detailed guidance, you can check out resources like this one (https://www.businesspsychic.com/) or this one (https://www.sherylwagnermedium.com/blog/5-mistakes-to-avoid-when-starting-a-psychic-business).
What You Will Be Doing
In a psychic business, you can offer a variety of services tailored to your clients' interests and needs. Here are some popular options:
1. Tarot Reading:
Using tarot cards to provide insights and guidance.
2. Astrology:
Creating and interpreting astrological charts to understand personalities and predict future events.
3. Mediumship:
Communicating with spirits or loved ones who have passed away.
4. Palmistry:
Reading and interpreting the lines and shapes of the hands.
5. Aura Reading:
Observing and interpreting the colors and energy fields around individuals.
6. Numerology:
Analyzing numbers to provide insights about life events and personality traits.
7. Psychic Healing:
Using spiritual energy to promote physical, emotional, or spiritual healing.
8. Crystal Ball Gazing:
Using a crystal ball to gain insights and predictions.
9. Dream Analysis:
Interpreting dreams to provide guidance and understanding.
10. Past Life Regression:
Helping clients explore their past lives through guided meditation or hypnosis.
These services can be offered individually or in combination, depending on your skills and clients' preferences. Make sure to clearly communicate the benefits and limitations of each service to your clients.
Qualifications/Skills Needed
To run a successful psychic business, you'll need a mix of psychic abilities and practical business skills. Here are some key skills to consider:
Psychic Skills
1. Intuition: The ability to sense and interpret subtle energies and messages.
2. Empathy: Understanding and connecting with your clients' emotions.
3. Specialized Knowledge: Expertise in specific areas like tarot, astrology, mediumship, etc.
4. Clairvoyance: The ability to see visions or images related to the past, present, or future.
5. Clairaudience: The ability to hear messages from the spiritual realm.
6. Clairsentience: The ability to feel sensations or emotions from spirits or energy fields.
Business Skills
1. Communication: Clear and compassionate communication with clients.
2. Marketing: Promoting your services effectively through various channels.
3. Customer Service: Providing excellent service to build trust and repeat business.
4. Organization: Keeping track of appointments, client records, and business finances.
5. Technical Skills: Managing a website, social media presence, and online booking systems.
6. Ethics and Integrity: Maintaining honest and ethical practices in all your dealings.
Personal Development
1. Continuous Learning: Regularly updating your skills and knowledge through workshops, courses, and reading.
2. Self-care: Maintaining your own well-being to ensure you can support your clients effectively.
3. Networking: Building connections with other professionals in the psychic and spiritual community.
Developing these skills will help you provide high-quality services and run a successful, reputable psychic business.
What You Can Charge/Earn
The amount you can charge and earn as a psychic business depends on factors like your experience, services offered, location, and marketing efforts. Here's a breakdown:
Pricing for Psychic Services
1. dividual Readings:
Tarot, palm, or psychic readings: $25–$60 per session (average cost // Fash(https://fash.com/costs/psychic-cost)).
Premium services (e.g., mediumship or in-depth astrology): $100–$350 per hour // Fash](https://fash.com/costs/psychic-cost).
2. Event Pricing:
Mini-readings at parties or corporate events: $150–$200 for the first hour, $100–$150 for subsequent hours // Fash](https://fash.com/costs/psychic-cost).
- Group workshops or classes: $20–$50 per attendee.
3. Packages:
- Monthly subscriptions for regular readings: $100–$200/month.
- Bundled services (e.g., tarot + astrology): $150–$300.
Earning Potential
1. Part-Time Psychic
If you conduct 10–15 readings per week at $50 each, you could earn $2,000–$3,000/month.
2. Full-Time Psychic
- With 20–30 readings per week at $75 each, you could earn $6,000–$9,000/month.
- Adding events or workshops could increase earnings by $1,000–$2,000/month.
3. Scaling Your Business:
- Offering online courses, selling spiritual products, or hosting retreats can add $5,000–$10,000/year or more.
Your income will grow as you build a loyal client base and expand your services. Would you like help creating a pricing strategy or exploring ways to scale your business? 🌟
Startup Cost/Unusual Expenses
Starting a psychic business can involve both typical and unexpected costs. Here's a breakdown of potential startup expenses:
Startup Costs
1. Basic Equipment:
- Tarot decks, crystals, incense, candles: $50–$200.
- Astrology software or apps: $50–$500, depending on features.
- Meditation cushions or decor for creating a tranquil space: $100–$300.
2. Digital Presence:
- Website development: $500–$2,000 (or less if using DIY platforms like Wix or Squarespace).
- Domain name: $10–$30/year.
- Business email setup: $5–$15/month.
3. Marketing and Branding:
- Logo design: $50–$500.
- Social media ads: $50–$300/month to start.
- Flyers or posters for local promotion: $20–$50.
4. Licensing and Legal:
- Business registration: $50–$200.
- Liability insurance: $200–$500/year (optional but recommended).
Unusual or Unexpected Expenses
1. Custom Tools:
- Personalized tarot cards or crystals: $100–$300.
- Unique branded merchandise (e.g., journals, mugs): $200–$500.
2. Training and Certifications:
- Psychic development workshops: $100–$1,000 per course.
- Online certifications in astrology or mediumship: $200–$600.
3. Venue Costs:
- Renting a space for in-person sessions: $300–$1,000/month.
- Booking venues for events or workshops: $50–$300/hour.
4. Tech Upgrades:
- High-quality webcam and microphone for online consultations: $100–$300.
- Subscription to advanced astrology or numerology tools: $20–$50/month.
5. Energy Maintenance:
- Energy-clearing tools (e.g., sage bundles, Himalayan salt lamps): $50–$100.
- Self-care expenses, like therapy or wellness retreats, to manage emotional strain: $300–$1,000/year.
6. Unexpected Marketing Opportunities:
- Booth fees for psychic fairs or wellness expos: $50–$300/day.
- Collaborations with local businesses (e.g., percentage splits): Varies.
Thinking through how you’ll handle these costs can prepare you for both the expected and unusual expenses.
Other/Ongoing Expenses
Running a psychic business involves ongoing expenses to keep your services professional, engaging, and efficient. Here's a breakdown:
1. Operational Expenses
Business Location: Rent for a physical space if you operate in-person ($300–$1,000/month).
Utilities: Electricity, internet, and phone services ($50–$200/month).
Subscription Fees:
- Astrology/numerology tools or software ($20–$50/month).
- Scheduling platforms like Calendly or Acuity ($10–$30/month).
2. Marketing Costs
Website Maintenance: Hosting fees for your website ($10–$50/month).
Digital Advertising: Costs for social media ads or Google Ads ($50–$300/month).
Content Creation: Hiring designers for branded posts or promotional videos ($100–$500/month, depending on frequency).
3. Supplies and Equipment
Psychic Tools: Regularly restocking tarot decks, crystals, candles, incense, etc. ($50–$150/month).
Office Supplies: Paper, pens, and other materials for in-person readings ($20–$50/month).
4. Professional Development
Training Programs: Continued education to enhance your psychic abilities (occasional costs ranging from $100–$500/course).
Books and Resources: Ongoing investment in spiritual or business-related literature ($20–$100/month).
5. Insurance and Legal
Liability insurance coverage to protect your business ($200–$500/year, or monthly payments around $20–$50).
Any necessary license renewals or legal fees (varies by location).
6. Self-Care and Energy Maintenance
Wellness Services: Therapy, coaching, or energy-clearing services to maintain emotional balance ($50–$200/month).
Health and Relaxation Tools: Purchasing items like essential oils, meditation gear, or retreats ($20–$100/month).
Would you like help estimating costs for a specific service model or creating a budget plan tailored to your psychic business? Let me know! 🌟
Other Services You Can Offer
Clare, the psychic realm offers endless possibilities for expanding your service portfolio! Here are some intriguing ideas to consider:
Advanced Psychic Services
1. Akashic Records Reading:
Help clients uncover their soul's purpose by accessing their Akashic Records (a metaphysical archive of every soul's journey).
2. Numerology Consultations:
Offer personalized insights based on numbers associated with clients' birthdates or names.
3. Dream Interpretation:
Decode symbols and messages from dreams to provide clarity and guidance.
Energy Work
1. Reiki Healing:
Provide sessions to balance clients' energy fields and encourage emotional or physical healing.
2. Chakra Balancing:
Help clients align and activate their energy centers for spiritual and physical well-being.
3. Aura Cleansing:
Offer services to cleanse, restore, or strengthen clients' auric fields.
Spiritual Coaching
1. Intuition Development Classes:
Teach clients how to hone their psychic abilities or trust their intuition.
2. Life Path Guidance:
Combine psychic readings with coaching to help clients navigate major life transitions.
Astrology & Cosmic Services
1. Transit Forecasting:
Provide detailed insights into how current planetary movements affect clients' lives.
2. Compatibility Readings:
Offer couples astrological analyses to explore their synergy and challenges.
3. Customized Lunar Rituals:
Create personalized rituals based on the moon's phases to manifest clients'goals.
Workshops & Events
1. Group Readings:
- Host events or workshops where participants receive mini readings or group spiritual guidance.
2. Retreats:
- Organize spiritual retreats for immersive experiences, combining psychic services, yoga, and meditation.
3. Seasonal Spiritual Celebrations:
Celebrate celestial events, like solstices or eclipses, with themed readings or rituals.
Products & Add-Ons
1. Customized Crystals or Spiritual Tools:
Sell crystals tailored to clients' needs or handcrafted pendulums.
2. Guided Meditation Recordings:
Create recordings or live sessions for relaxation or spiritual connection.
3. Subscription Services:
Offer monthly packages that include readings, insights, and spiritual content.
Would you like me to expand on any of these services or help brainstorm how to integrate them into your business plan? 🌟
How to Start Your Own Business
Starting a psychic business involves several key steps to ensure success and credibility. Here's a roadmap to guide you:
1. **Develop Your Skills**: Enhance your psychic abilities through training and practice. Consider certifications in your chosen field to add credibility.
2. **Create a Business Plan**: Outline your goals, target market, pricing, and marketing strategy. A solid business plan will help you stay focused and organized.
3. **Legal Considerations**: Research the legal requirements in your area, such as obtaining licenses or permits. Make sure to comply with all local regulations.
4. **Set Up Your Space**: Whether you plan to offer in-person consultations or online services, create a comfortable and professional environment. For online services, invest in a good webcam and microphone.
5. **Build a Website**: Establish an online presence with a professional website that showcases your services, testimonials, and contact information. Consider adding a blog to share insights and attract visitors.
6. **Marketing and Promotion**: Utilize social media platforms to promote your business and engage with potential clients. Attend local events and fairs to network and spread the word about your services.
7. **Client Management**: Set up a system to manage client appointments, records, and payments. Consider using scheduling software to streamline the booking process.
8. **Maintain Ethics and Integrity**: Always provide honest and ethical services. Build trust with your clients by being transparent about your abilities and respecting their privacy.
9. **Continuous Learning**: Stay updated with the latest trends and developments in the psychic industry. Attend workshops, read books, and connect with other professionals to improve your skills.
Starting a psychic business can be both fulfilling and challenging. With dedication and the right approach, you can create a successful and reputable practice. If you have any specific questions or need further guidance, feel free to ask!
The Business Plan for Small Business
Get clear step-by-step instructions and expert tips on how to build your business plan. Whether this is your first plan or you are an experienced business plan writer, it's fast and easy to create a business plan with these easy to follow instructions. The Business Plan for Small Business is available for immediate download.
- The needed Excel® spreadsheets and the Word® documents are included.
- The workbook contains all of the instructions you need to complete your business plan.
- Designed and Customized for a Small Business
Some of the Features the Business Plan:
- Complete the business plan in eleven (11) steps.
- The workbook contains all of the instructions you need to complete the business plan for your Small Business.
- Contains samples, illustrations, charts, and graphs.
- Create a mission statement to synchronize your company's activities with a clear corporate vision.
- Detailed instructions on how to customize your business plan.
- Powerful forecasting tools and a complete, integrated financial plan.
- Prepare marketing and sales plans with systems for determining optimal strategies, tactics and pricing.
- Optional system to assess strategies prior to drafting plan.
- The charts and graphs that are important to you and your potential lenders are automatically created.
- Select from the list of products and services to help you choose what you will offer your customers in the operation of your Small Business.
- Sections included are:
- Personal Evaluation
- Cover Sheet
- Executive Summary
- General Company Description
- Products and Services
- Startup Cost and Capitalization
- Marketing Plan
- Sales Forecast
- Operational Plan
- Management and Organization
- Financial Plan
- Learn how to keep your business plan up to date.
- Impress your audience with a professional, attractive document in the format accepted by the SBA, investors, and major lenders.
- No writer's block; just follow the steps.
- Bank or Grant Funding. Will meet or exceed bank or government guidelines.
- In addition to the complete business plan, you are provided information references and website links to valuable business resources.
Where to Begin
How you Can Succeed
Marketing a psychic business requires a blend of traditional and digital strategies to reach your target audience effectively. Here are some strategies that have proven successful for many psychic professionals:
Digital Marketing
1. **Social Media**: Use platforms like Instagram, Facebook, and TikTok to share insights, conduct live readings, and engage with your audience. Visual content and personal interaction can build trust and attract clients.
2. **Website and SEO**: Create a professional website that highlights your services, testimonials, and contact information. Optimize it for search engines (SEO) to ensure it ranks well for relevant keywords like "psychic readings" or "tarot reader."
3. **Blogging**: Write blog posts about various psychic topics, such as tarot cards, astrology, or spiritual healing. This not only educates your audience but also improves your website's SEO.
4. **Email Marketing**: Build an email list and send out newsletters with updates, special offers, and valuable content. This helps maintain a connection with your clients and encourages repeat business.
5. **Online Directories**: List your business on online directories and platforms like Yelp, Google My Business, and psychic-specific directories.
Traditional Marketing
1. **Networking**: Attend local events, fairs, and spiritual gatherings to network and promote your services. Personal interactions can leave a lasting impression.
2. **Flyers and Business Cards**: Distribute flyers and business cards in local cafes, wellness centers, and community boards.
3. **Workshops and Classes**: Offer workshops or classes on psychic topics. This positions you as an expert and can attract clients interested in learning more.
4. **Local Media**: Reach out to local newspapers, radio stations, or TV shows to feature your business. Media coverage can boost your credibility and reach a wider audience.
Word-of-Mouth
Encourage satisfied clients to refer their friends and family. Offering a referral discount or incentive can motivate clients to spread the word about your services.
Combining these strategies will help you create a robust marketing plan that attracts and retains clients.
Market Research: Surveys and Questionnaires
Questionnaires are still very much the cornerstone for market research and the effectiveness of the questions will be determined by the quality and structure of the questionnaire itself. By ignoring this fact, the results you obtain may be irrelevant, inaccurate and even inconclusive. This E-book will help explain how to structure and develop your questionnaire in order to gain a response that can be used for an accurate analysis and constructive feed back.
Some of the Features of this Book:
- Ways of issuing questionnaires.
- Which people to target with your survey and questionnaire.
- Types of questions for the questionnaire.
- Examples of questionnaires.
- Structuring the questionnaire.
- Designing the questionnaire.
- Doing your sample survey with the questionnaire.
- Planning the survey.
- How to write the questionnaire.
- Survey fieldwork.
The Complete Basic Office
A good office setup is critical to smooth running business operations. Controlling purchases and expenses are a key ingredient to a healthy business, especially a new start up venture. This book gives you the information you need to professionally set up your office operation.
Some of the Features of the Book:
- How to determine the office supplies, equipment and furniture you will need for your business.
- Introduction to office supplies and equipment.
- How to buy or lease office furniture and options for second hand furniture.
- Keeping control of our office supplies.
- Complete listings on filing systems, desks, shelving, and chairs.
- Complete computer listings including PC, laptops, modems, monitors, mouse and keyboards, printers, scanners, photocopiers, fax machines and combined units.
- How to maximize connectivity, size and legal software.
- Links to government websites for business operations.
- 100 ways to increase your business.
- Free Reports including coupons and discounts and how pricing affects your business.
Paperback
How to Attract Clients/Customers
There are several tools available that can help you manage your marketing campaigns efficiently. Here are some of the top options:
1. **ClickUp**: An all-in-one project management and productivity tool that helps you centralize and manage your work, collaboration, and communication from one place.
2. **Airtable**: A customizable project management tool that offers flexible project management capabilities.
3. **ActiveCampaign**: Best for email marketing automation.
4. **Iterable**: Ideal for cross-channel campaign management.
5. **Asana**: Known for its team collaboration features.
6. **Campaign Monitor**: Great for customizable email designs.
7. **Constant Contact**: Best for small business email tools.
8. **WhatConverts**: Excellent for lead tracking analytics.
9. **Mailchimp**: Offers a beginner-friendly interface.
10. **Salesforce**: Best for enterprise solutions.
11. **Smartsheet**: Scalable project tracking.
These tools can help you plan, track, execute, and analyze your marketing campaigns more efficiently. They offer various features such as project management, marketing automation, team collaboration, and performance analytics.
If you need more specific recommendations or have any other questions, feel free to ask!
New Customer Development Program
How to get new accounts and new customers is the #1 concern of any business. How to get the new customers you need to provide the income your business requires is a matter of prime importance to survival and growth. Many businesses, large and small, approached new customer acquisition in a haphazard, unplanned, and uncoordinated way. The results are usually disappointing, expensive, and inadequate from the standpoint of a contribution of to the profitability and success of your business.
New Customer Development Program for a Psychic Business
### Table of Contents
1. Introduction
2. Objectives
3. Target Audience
4. Customer Acquisition Strategies
5. Customer Engagement and Retention
6. Measurement and Evaluation
7. Case Studies and Success Stories
8. Conclusion
9. Appendices
### 1. Introduction
- Purpose of the booklet: To guide psychic business owners in acquiring and retaining new clients.
- Importance of new customer development: Building a loyal client base to ensure steady growth and profitability.
### 2. Objectives
- Define clear goals for acquiring new customers.
- Align objectives with the overall vision and mission of the psychic business.
### 3. Target Audience
- Identify key customer segments (e.g., individuals seeking personal guidance, spiritual growth, life coaching).
- Develop customer personas: Age, interests, challenges, and psychic service preferences.
### 4. Customer Acquisition Strategies
- **Online Marketing:** Utilize social media platforms, SEO, and PPC advertising to attract potential clients.
- **Content Marketing:** Create engaging blog posts, videos, and podcasts on psychic topics to attract organic traffic.
- **Referrals:** Encourage existing clients to refer friends and family by offering incentives.
- **Partnerships:** Collaborate with wellness centers, yoga studios, and other related businesses for cross-promotions.
- **Workshops and Webinars:** Host free or paid events to showcase your expertise and attract new clients.
### 5. Customer Engagement and Retention
- **Onboarding Process:** Welcome new clients with a personalized introduction and a clear outline of services.
- **Customer Support and Communication:** Maintain regular communication through newsletters, emails, and follow-up calls.
- **Loyalty Programs and Incentives:** Offer discounts, loyalty points, or exclusive access to events for repeat clients.
- **Feedback and Improvement Loop:** Collect feedback from clients and continuously improve services based on their suggestions.
### 6. Measurement and Evaluation
- **Key Performance Indicators (KPIs):** Track metrics such as customer acquisition cost, customer lifetime value, and retention rate.
- **Tools and Methods for Tracking Success:** Use CRM systems, analytics tools, and surveys to monitor progress.
- **Continuous Improvement Strategies:** Regularly review KPIs and adjust strategies as needed to achieve better results.
### 7. Case Studies and Success Stories
- **Real-life Examples:** Share success stories of clients who have benefitted from your psychic services.
- **Lessons Learned and Best Practices:** Highlight what has worked well and provide actionable insights for others.
### 8. Conclusion
- Recap of key points.
- Encourage psychic business owners to implement the program and continuously refine their approach.
### 9. Appendices
- **Additional Resources:** Templates for marketing materials, client intake forms, and feedback surveys.
- **Contact Information for Support:** Provide contact details for further assistance and guidance.
This booklet will serve as a comprehensive guide to help your psychic business attract and retain new customers effectively. If you need more detailed content for any specific section, just let me know!
Customer Care Program
Good customer relations will give you a sense of achievement, satisfied customers and the improved chance of further promoting your business. So, how can you ensure that your customers will stay loyal to your business?
Some of the Features of this book:
- How to improve customer care and customer relations.
- How to establish your Customer Relationship Management (CRM) program.
- Selling and building customer relationships over the telephone.
- How to handle customer complaints and establish solutions.
- How to establish the programs that will reflect your business.
- How to establish automatic email responses, set up telephone call centers, direct mail campaigns and loyalty cards.
- How to handle gatekeepers.
- How to establish customer loyalty programs.
- How to keep customers loyal to your business.
- How to make telephone sales and appointments.
- How to expand your customer database.
- How to encourage old and new customers to buy again.
- How to generate more profit with direct mail and email marketing.
- What you need to know about customer retention.
Associations/Organizations
There are an immense amount of small business associations and organizations for both general and specific businesses and industries. The associations and organizations that support psychic businesses by providing resources, networking opportunities, and professional certifications.
I can think of no reason not to join any or all small business associations that are relevant to your business. Most charge a membership fee, but if you get one, two or even a dozen ideas that impact your bottom line for the positive, then it will be well worth the cost. Having an invaluable business partner—or maybe even a loyal customer down the line—is priceless for your business.
Think about what your goals are, where your customers are and what they need, and investigate how the association can connect you to the partners, networks, and customers you need to grow your business.
Industry Specific Organizations
Spiritual Professionals Association (SPA) This organization offers professional certification, training, and networking opportunities for spiritual advisors, psychics, and metaphysical practitioners. They focus on ethical practices and provide resources to help members grow their businesses
Horoscope Services While not an association, this platform offers guidance on starting and growing a psychic business. They provide insights into market research, business planning, and revenue strategies tailored to the psychic industry
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American Association of Psychics & Healers (AAP&H) AAP&H connects psychics, mediums, and healers across the United States. They provide a directory of trusted professionals, certification programs, and resources to support members in their spiritual and business journeys
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Books/Magazines/Periodicals
Industry Specific Books & Publications
In this section you will find resources that are specific to your field of interest.
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Social Media
Not every social media company has industry specific links. Where I could find them I have tried to give you the best, otherwise I have provided links to general business social media accounts. Not all of these will meet your criteria, but things on the internet change on a daily basis and I will keep researching. If anyone accessing this site knows of a industry specific social media company please email me the information at
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Medium
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Words to Know
Business Plan
Here is your tool for demonstrating how you want to establish your small business and how you plan to grow it into good financial health. When writing a business plan, it should include financial, operational, and marketing goals as well as how you plan to get there. The more specific you are with your business plan, the better prepared you will be in the long run.
B2B
abbreviation for business-to-business: describing or involving business arrangements or trade between different businesses, rather than between businesses and the general public
B2C
abbreviation for business-to-consumer: describing or involving the sale of goods or services directly to customers for their own use, rather than to businesses
e-business
the business of buying and selling goods and services on the internet, or a particular company that does this
Bootstrapping
Using your own money to finance the start-up and growth of your small business. Think of it as being your own investor. Once the business is up and running successfully, the business finance term and definition bootstrapping refers to the use of profits earned to reinvest in the business.
Employer Identification Number (EIN) Certificate
In order to be more easily identified by the Internal Revenue Service, every business entity is assigned a unique number called an EIN. When you start your small business, an EIN will be assigned and mailed to the business address. This number never changes, and you will be asked to furnish it for many reasons.
Articles of Incorporation
This is legal documentation of the business’s creation, including name, type of business, and type of business structure or incorporation. This paperwork is one of the first tasks you will complete when you officially start your business. Once submitted, your articles of incorporation are kept on file with the appropriate governmental agencies.
Income Statement
Here is one of the four most important reports lenders and investors want to see when evaluating the viability of your small business. It is also called a profit and loss statement, and it addresses the business’s bottom line, reporting how much the business has earned and spent over a given period of time. The result will be either a net gain or a net loss.
Statement of Cash Flow
One of the important documents required by lenders and investors that shows a summary of the actual collection of revenue and payment of expenses for your business. The statement of cash blow should reflect activity in the areas of operating, investing, and financing and should be an integral part of your financial statement package.
Bootstrapping
Using your own money to finance the start-up and growth of your small business. Think of it as being your own investor. Once the business is up and running successfully, the business finance term and definition bootstrapping refers to the use of profits earned to reinvest in the business.
Financial Statements
An integral part of the loan application process is furnishing information that shows your business is a good credit risk. The standard financial statemen packet includes four main reports: the income statement, the balance sheet, the statement of cash flow, and the statement of shareholders equity, if you have shareholders.
Lenders and investors want to see that your business is well-balanced with assets and liabilities, has positive cash flow, and will have capital to make expected repayments.
Net Worth
This business finance term and definition is an expression of your business’s total value, as determined by your total current assets less the total liabilities currently owed by the business. With your business’s most recent balance sheet in hand, you can calculate the net worth using a simple formula: Assets – Liabilities = Net Worth.
Featured Business
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Description
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History
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Marketing Tips
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What I've Learned
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Advice and Recommendations
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