Business Startup – Dotting the I’s and crossing the T’s – Part 1
Dotting the I’s and crossing the T’s
A business plan is one of the most dreaded yet most important elements that one incurs in starting a new business. Some think that business plans are only for people that are getting a loan from a bank or are searching for investors. People that think that business plans are just a waist of time and that a mental business plan is just as good. Others go about it with minimal effort and will only make a part of a plan to see how there business is going. All of these thoughts are badly educated thoughts and without a good plan, a business is more likely to fail than to succeed.
A business plan is for you and this is the first thing for you to know about a business plan. It is a blue print to build, run and expand you business. A business plan will help you look at and understand strategy planning, market research, financial strategies, marketing campaigns, and operational details.
Business plans are not easy and they need to be written and rewritten. There are some basic outlines to follow in order to make a business plan. This will give you an idea of where to start and how to complete your business plan.
First, let’s start with the basic elements that a good business plan should include.
• An appealing statement of purpose – This is what you will tell people when they ask you what your business is about.
• Description of your target market – This will give a detailed description of who your market will be and how you intend on attracting that market.
• Product or service description – In this description you need to mention the advantages of your product or service and the challenges.
• List of collaborators – A list of who will work with you to advise and guide certain aspects of you business. It is important to illustrate the qualifications they have to do this.
• Financial plan – This will outline the details of how you intend to raise capital as well as the expenses and profits that you will encounter the first couple of years.
• List of positives and negatives – This should illustrate the advantages and risks that you business will encounter in its startup and the things that will encourage growth.
Think of your business plan as a map that will help you find your way to your destination at any given time in the life of your business. If your business plan is thought out and written well, it should be able to help keep you on track no matter what your business is experiencing good or bad. A business plan has been compared to the centerboard of a sailboat. No matter the direction of the wind, the business plan will help keep you going in the right direction and on course.
You can find examples of a business plan on line or you can get one at your local bank to look at before you get started. You can also find books at your local library that contain business plan samples. It is important to think of the sample as just a template. Use it as an outline to give you some guidance with the important elements of a plan. You should not be concerned about the length or complexity of your plan. The only important thing is that it is constructed so that you can understand it and that it has all that you need to help recognize and plan for the obstacles that can be encountered and how to get around them.
• Newcomers to business, a couple of businesspersons did not have the abilities need to operate a business. The plan that they wrote gave them the direction needed to develop the skills that they lacked, skills like sales and marketing. They spent a year going through the plan and strengthening the aspects of the plan that they knew were weak. The result was they starting a successful business.
• People that already have the necessary skill set and training can use the plan to keep them on track. It can be used as a check-list reminding you what needs to be done and when
• When developing your business plan gather the information from many different resources to understand better how you will produce and price your product or service. In the process of writing your business plan, you will discover ways that you can make your business more efficient and profitable. When you are producing financial statements, it will be helpful to look at and analyze the market, the expenses incurred and prices charged. This will give you a better idea of your profit potential. The increased knowledge that you will gain in your business will make you and the potential success of your business more credible.
• There is much to be gained from developing your business plan. You will have an idea and strategy for overcome adversity that you may encounter. You will have a better understanding of the financial capabilities of the business that will encourage investors and lenders to give money. The business plan will continue to pay off in the future and can be used to persuade investors and clients.
You can never have so much to do that you should put the business plan on the back burner. Don’t assume that the only things needed to make a successful business are a good concept and some capital. Being able to plan for your business is a good indication that you will have what it takes to be able to successfully operate a business.
