Get Smart Before You Start A New Business - Part 03 - The Planning Stage

Now that you have conducted comprehensiveASSISTANCE
research as indicated in (Part 02) of this mini series,There are a TON of business plan outlines on the net
you are more prepared to begin to assemble youryou can get for free. The SBA has decent outlines
thoughts and data into a business plan format. Beforeyou can download for free although most business
doing that, you need to consider a few things:plan outlines you find will be written for perfect
WHAT A BUSINESS PLAN ISbusinesses with an operating history. Few outlines
A written business plan is a road map from where youcover start up operations. In any case, there is a lot of
are now to where you want to be one, two, five andfree information available from the SBA and from
ten years from now with your business. To write aSCORE (Service Corp of Retired Executives).
good plan you must have vision for your business nowBetween these two organizations, which you can
and well into the future. Why? You may think you canaccess online and offline, you will find resources to
start your business without a formal written plan, andmeet most planning needs. You can also contact you
you can, but you will have far more unanticipatedlocal chamber of commerce, state chamber of
problems, probably make more costly mistakes andcommerce, local universities, and Small Business
the probability of failure is far higher. What if I put you inDevelopment Corporations (SBDC’s) in your
a rowboat without oars, no map, no compass, and noarea. You also want to call your Secretary of State
sextant and pushed you away from shore. Then I told(SOS) to get information on licensing and information
you to go to a specific dock (called success) inpackages related to your business. The SOS is your
France, what do you think are the chances of youkey portal for local, state and federal compliance
floating across the ocean and accidentally gettinginformation. We do offer a super comprehensive
there are? You wouldn’t get there would you?ebook that covers all forms of business plans including
You need the oars, the map, the compass and thestartups, home based business and much more. I
sextant to navigate! Even with these tools it would bemention it because you should be aware that it exists.
difficult to navigate across the ocean even if you hadOTHER PLANNING ISSUES
experience. The same holds true for a business plan.WEBSITES: Would a website be helpful? Almost
The plan is the oars, map, compass and sextant forevery business can benefit from having a website.
your business and is absolutely critical for you to goThere are many website companies online that offer
from where you are now, to that specific dock calledweb site services for as low as $150.00 annually (or
success. Your plan will chart your course and theless) and include templates, which are designed so that
better the plan, the easier the trip.even a novice can have a website and they are
THE REASONS FOR WRITING A PLANdesigned like a fancy word processor. These sites are
There are two primary reasons for writing a businesseasy to learn and you can have a professional looking
plan: For your own purposes or to raise investmentwebsite setup in a manner of a few hours. The benefit
capital. Writing a plan for investment capital isof having a website is that it can offset the cost of
comprehensive and requires a high degree of businesscreating literature. You can showcase your products
skill across a spectrum of disciplines (management,and services online and have your website address on
marketing, production, advertising, sales, etc) includingyour business cards. Every business (and most
accounting for pro forma projections, which meetpeople) has Internet access and it often makes more
investor expectations. If you are writing a plan for yoursense to invest your time and money into a website
own purposes, the plan should be comprehensive butinstead of wasting money on hard-copy literature.
does not need to be as formal as the other. WhichWebsites are flexible and you can change the content
plan you write will determine its depth and scope. Inwhen you want, upgrading your selling message,
either case, you want a plan that reflects the truth andpromotional offers, etc. This will save you a TON of
best analysis of the risks and opportunities associatedmoney and free you from the cost of producing paper
with your venture. Boil all the junk down and theliterature. My opinion is that every business should have
primary purpose for having a business plan is to controla website. Here’s another benefit: when you set
chaos. It forces you to look into the future andup a website, you have a slice of real estate on the
anticipate problems in advance, ways to overcomeinformation super highway, you have a presence, your
obstacles and to think critically about your businessbusiness comes alive and you avoid all the costs
before making a financial commitment. It doesn’tassociated with a bricks and sticks operation. A
cost money to think or plan or write and having awebsite can also serve as a vehicle to point investors
business plan is in your best interest (.)to for their review and the media for publicity. Many
UNDERSTANDING BUSINESS LIFE CYCLE:home based businesses are run well using a website.
A business is just like a human being. Humans evolveHaving a website factored into your business plan is
from when a baby is conceived to newborn, infant,an important consideration.
childhood, teenage, adult and mature. The same with aAlso consider what kind of technology you will need to
business: your idea is the “conception” ofsupport your business, especially your computer,
the business and your business planning process is thesoftware (for word-processing, desktop publishing,
gestation period. When your business beginsaccounting, database management, etc). Most often is
operations, it is a new born baby requiring nurturing andmakes sense to get an integrated software program
must be fed with work and cash flow. As the businessthat handles all these functions so you can import and
grows it will go through stages very similar to a human,export data between the functions of the software.
childhood to teen to young adult and finally maturity.I think I have given you a lot of information to think
During each stage of the business, the business willabout in this article and if you are just starting to
have different demands and require differentexplore a new venture, you have a lot of work to do!
management techniques. As you consider yourYou may want to keep your eyes on my articles
business plan, keep this in mind and plan for it. Yourbecause this is a continuing mini series that will cover a
cash flow needs at the beginning of a business will belot of ground in the coming days.
much different than as a young adult. Your staff will beTo your success!
bigger, etc.Copyright © 2006 James W.
SOURCES FOR BUSINESS PLANNING