| I often meet new entrepreneurs and an alarming trend | | | | everything to gain. |
| among them is that they do not have a business plan. | | | | A few words of advice... |
| The entrepreneurs that I am referring to usually fall in | | | | Making a business plan can be intimidating. There are a |
| or around one of the following scenarios: | | | | lot of components, things that you may think does not |
| - they are working on a start-up while they continue | | | | apply to you. Think again. Even a small business |
| working their full time job for funding | | | | owned by one person who provides one service |
| - they have decided to open a business that does not | | | | should have a business plan that is around roughly 20 |
| require a lot of upfront funding they are turning a | | | | pages. Did you pass out? Don't worry it should be |
| hobby into a business/side business, such as a | | | | double spaced and you can always throw in a few |
| photographer | | | | graphs and charts here and there. |
| - they are a professional who decides to branch out | | | | You do not have to create it in one day, but you do |
| on their own, such as an attorney | | | | have to be thorough, and believe it or not, once you |
| - they have the equipment and absolute basics to take | | | | get started you are going to find it hard to stop. You |
| their business off the ground | | | | will find it more fun than you initially thought. If you have |
| Generally the underlying theme seems to be that they | | | | close to 10 pages, you aren't doing it right. Be thorough |
| typically own the business by themselves, they do not | | | | and step up to the plate and work harder for yourself. |
| require a business loan, and consequently overlook a | | | | You will thank me later. |
| business plan. Business plans are not, under any | | | | Many bigger businesses or well thought out start ups, |
| circumstances, designed solely for acquiring funding. In | | | | usually with partners, have financial plans, data, and |
| fact, at the exact moment one makes the decision to | | | | statements that are really in-depth. This is where a |
| create a business, the absolute very first thing they | | | | small business plan becomes slightly easier. You do not |
| must do is: create a business plan. Pull up a chair for a | | | | have employees to account for and a lot of |
| minute and I'll explain why. | | | | outsourcing to account for, but you need to think about |
| Business plans are a map and a compass. They | | | | all of your real office costs, cell phone, insurance, |
| illustrate where you came from, where you are at, | | | | marketing, salary, equipment etc. This budget is going |
| where you are headed, why, and how. They define | | | | to go into your business plan, and you will be visiting it |
| the value that your business provides to consumers. | | | | often. |
| They outline goals and provide a mini-map for | | | | A few other things to keep in mind: |
| achieving them. Often times they determine how your | | | | - DO prepare a complete business plan |
| business is going to deal with competitors, your | | | | - DO your research (google is excellent for this) |
| marketing strategy, finances, financial plan, keys to | | | | - DO spell out your strategies, weaknesses, and |
| success, competitive market analysis, defining and | | | | strengths |
| exploring your niche possibilities, sales forecast and so | | | | - DO be brutally honest and realistic - you are the only |
| much more (I will link you some good examples in a | | | | person who is going to see it (unless you apply for |
| few minutes). | | | | funding) |
| Once you sit down and develop your business plan I | | | | - DO leave room and plan for realistic growth |
| am willing to bet you, that you discover something new | | | | - DON'T be optimistic when estimating future sales |
| about your business, rather it be a strategy, service, or | | | | - DON'T "low ball" when estimating future expenses |
| marketing idea. A business plan is truly a path of | | | | - DON'T focus solely on long term goals; focus on the |
| discovery. Once you have this gem at your finger tips, | | | | first year, and save a sentence here or there for the |
| you will still need it - so don't be quick to toss it to the | | | | long term |
| side. You need to update it - and update it often. If you | | | | - DON'T discount your weaknesses - this is the time to |
| decide to go in a different direction, take a different | | | | spell them out and plan for them |
| approach, or deviate from your original plan, change | | | | As promised, here are links of some good examples |
| your plan accordingly. Put down the chisel, this bad boy | | | | of business plans (designed more for smaller |
| needs to be on paper, preferably an editable computer | | | | businesses/sole-proprietors) that I have found to help |
| file. | | | | guide you in the right direction: |
| When you have a bad business day (everyone does | | | | Computer Consulting Business Plan from Entrepreneur |
| and so will you) look to your old buddy to renew your | | | | - sample plan for a faux consulting firm |
| faith in your dream, your business, and yourself. Your | | | | Maternity Clothing Online Store Plan from - sample plan |
| plan will remind you of how you got here and why you | | | | for a faux store |
| wanted to be here. When you are faced with tough | | | | When in doubt you can always look to the SBA (US |
| opposition, decisions, or a competitor and you are not | | | | Small Business Administration) for free advice. They |
| sure what the steps to take are, you can find the | | | | are there for you and have a wealth of knowledge |
| answer in your plan as well. | | | | and support for small businesses. |
| Still need convincing? Recent studies show that | | | | What are you still doing here? You have a plan to |
| businesses with a completed business plan are twice | | | | write. Best of luck! |
| as likely to succeed. Give it a shot - you have | | | | |