Many new small business owners start on a vision which is great; however that vision truly does not have a plan. A business plan is important to offer a solid foundation for your business model and forethought of expense, income, marketing, etc.
I work with many small business owners and truly not all 'ideas' or 'dreams' are the right fit for that person. One major downfall with many business owners is that they act on impulse and not logistics.
Example... 'Bob' has a relative who is diabetic – he decides to open a store front bakery in a strip center and only utilizes family and friends to help create, build, market and originate ‘goods’. No one is on a payroll – everyone is a volunteer which of course equates to no accountability. The store receives some media attention due to the ‘specialization’ of the store. People come in from the media attention – store becomes busy – no true employees since employees are volunteers / family and Bob is now having a hard time keeping up on orders because he does not have the funds to purchase bakery supplies. Bob is selling as much as he can but he is truly upside down on funds since he has utilized all of his personal funds to get the bakery up and running. Bob realizes that he needs to sell over 5,000 cupcakes to make his rent, insurance payments, vendor payments, etc. Unfortunately, 7 months later, the bakery closes.
This is a true example of not having a solid business plan with a realized budget. Good people with good thoughts however did not have the guidance from a SCORE or SBA counselor to assist them with their business model.
Make sure that you take the time to meet with your proposed landlord to learn about the fine print, make sure you meet with the local village or city to learn more about the demographics of the area, make sure you have disposable income since you will not be ‘making money’ right away, make sure that you have a clear sense of what you wish to have your business look like – stick to your plans – do not let anyone up sell you on your plans.
Enumerating all the mistakes may be productive to a point, but discussing the means to avoid them as a whole is more constructive.
A sound business plan is the best tool for the new enterprise. It is just as much for the business planner as for the investor. Completing the process will convince the most important individual that a viable business vision exists for the enterprise. That individual is you.
When you have completed your business plan, you will be able to pitch it with confidence to people who can help you. It will be your road map to your future that you can slide across the table to a banker, partner or investor. You can address it with verve because you own it by having done it.
The free links below provide free tools and examples on business planning.
How To Write A Business Plan
Sample Business Plans
MicroMentor
Showing posts with label Small Business Plan. Show all posts
Showing posts with label Small Business Plan. Show all posts
Monday, July 9, 2012
Monday, April 16, 2012
The Number 1 Priority For Small Business Growth
The number one priority a small business owner should have in growing their business is ....
A business plan generated with care and kept a living breathing document staying abreast of the times.
A business plan is the vehicle by which you conduct the research for your market, decide which individuals to involve in the sales of your product, and validate your revenue and expense financial forecasts. It is the means by which you will convince first yourself and then others who can help you that your company has a road map to success.
Small Business owners should go to the SBA web site that guides them through the business planning process. They should follow the site presentation and note the factors to consider in growing a business.
SBA
This link contains examples of business plans ....
Business Plan Examples
Entrepreneurs can also choose a free counselor below who is experienced in their industry and that they feel can help them. They should try their plan out on the counselor. The counselor will put on a banker's or investor's hat and give them a reaction, then make suggestions to improve the plan and how to communicate it to a financial institution.
Free Counselor
Above all - PLAN --- to Succeed!
If you can't plan it how are you going to do it --- or convince a financial source you can?
A business plan generated with care and kept a living breathing document staying abreast of the times.
A business plan is the vehicle by which you conduct the research for your market, decide which individuals to involve in the sales of your product, and validate your revenue and expense financial forecasts. It is the means by which you will convince first yourself and then others who can help you that your company has a road map to success.
Small Business owners should go to the SBA web site that guides them through the business planning process. They should follow the site presentation and note the factors to consider in growing a business.
SBA
This link contains examples of business plans ....
Business Plan Examples
Entrepreneurs can also choose a free counselor below who is experienced in their industry and that they feel can help them. They should try their plan out on the counselor. The counselor will put on a banker's or investor's hat and give them a reaction, then make suggestions to improve the plan and how to communicate it to a financial institution.
Free Counselor
Above all - PLAN --- to Succeed!
If you can't plan it how are you going to do it --- or convince a financial source you can?
Monday, January 2, 2012
The Importance Of A Business Plan
Having volunteered with SCORE and Micro Mentor in this venue for several years, I am convinced that the value of a business plan as a means to assess and manage risk is the principal answer to "how to be successful".
I urge small business to test the water, and try out the business model before launch by taking it through the proof of concept offered at the links below.
I have heard many critical of business planning say that it is cosmetic, drives more work than it is worth in terms of obtaining financing and similar commentaries.
The fact remains that among the 5,000 plus cases I have handled in the last 7 years the vast majority of those who plan succeed and many who fail to plan do not.
I ask the simple question, "How are you going to do it if you cannot plan it?"
I have not met many small business owners who have enjoyed the business planning process in answering my question but I have not met any who have regretted it once they have completed their plan.
This is especially true when the plan yielded a road map they had confidence in, a communicative vehicle to slide with confidence across the table to a banker or an investor and a risk reduction process of genuine value.
Writing A Business Plan
Sample Business Plans
Courtesy Of Kenneth Larson
I urge small business to test the water, and try out the business model before launch by taking it through the proof of concept offered at the links below.
I have heard many critical of business planning say that it is cosmetic, drives more work than it is worth in terms of obtaining financing and similar commentaries.
The fact remains that among the 5,000 plus cases I have handled in the last 7 years the vast majority of those who plan succeed and many who fail to plan do not.
I ask the simple question, "How are you going to do it if you cannot plan it?"
I have not met many small business owners who have enjoyed the business planning process in answering my question but I have not met any who have regretted it once they have completed their plan.
This is especially true when the plan yielded a road map they had confidence in, a communicative vehicle to slide with confidence across the table to a banker or an investor and a risk reduction process of genuine value.
Writing A Business Plan
Sample Business Plans
Courtesy Of Kenneth Larson
Monday, October 31, 2011
How To Get Your New Small Business Off To A Good Start
Here are some tips:
TASTE, TRENDS AND TECHNOLOGY
What does your research indicate is the trend in your field? Will it stay the way you are currently offering supplies and services or will it change? This item covers the developments you expect for the next few years. Evan a 'perfect' business can become obsolete overnight due to future developments. Specify a 5 year forecast of your field in your area.
SALES REVENUE FORECAST
Have you developed these targets? This section shows your estimates of future sales revenue for your business. Your strategic plan, needs to spell out the specific actions you will take to achieve your forecast sales revenues.
DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION
How does your business differ from the competition's strong and weak points. Again, remember to carefully look at your business from the customer's perspective. If you're not sure how your pricing policies compare to the competition, here are some guidelines. Most people associate high prices with high quality and extra service, while they associate low prices with low or average quality and minimum service. Make sure you provide extra quality and service if your prices are higher than your competition or make sure that your prices are lower if your quality is average and your service is minimum.
DECIDE HOW TO REACH CUSTOMERS
Once you describe your target customer, it's easier to create a list of possible ways to reach that person. One of your jobs as a businessperson is to decide which of all the possible methods of communication will give you the most exposure for the least cost in money or time.
EVALUATE THE RISKS FACING YOUR BUSINESS
COMPETITION: Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.
PIONEERING: If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?
CYCLES AND TRENDS: Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?
SLOW TIMES: Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?
OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you're short on?
Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.
Above contribution By Kenneth Larson
TASTE, TRENDS AND TECHNOLOGY
What does your research indicate is the trend in your field? Will it stay the way you are currently offering supplies and services or will it change? This item covers the developments you expect for the next few years. Evan a 'perfect' business can become obsolete overnight due to future developments. Specify a 5 year forecast of your field in your area.
SALES REVENUE FORECAST
Have you developed these targets? This section shows your estimates of future sales revenue for your business. Your strategic plan, needs to spell out the specific actions you will take to achieve your forecast sales revenues.
DIFFERENTIATE YOUR BUSINESS FROM THE COMPETITION
How does your business differ from the competition's strong and weak points. Again, remember to carefully look at your business from the customer's perspective. If you're not sure how your pricing policies compare to the competition, here are some guidelines. Most people associate high prices with high quality and extra service, while they associate low prices with low or average quality and minimum service. Make sure you provide extra quality and service if your prices are higher than your competition or make sure that your prices are lower if your quality is average and your service is minimum.
DECIDE HOW TO REACH CUSTOMERS
Once you describe your target customer, it's easier to create a list of possible ways to reach that person. One of your jobs as a businessperson is to decide which of all the possible methods of communication will give you the most exposure for the least cost in money or time.
EVALUATE THE RISKS FACING YOUR BUSINESS
COMPETITION: Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.
PIONEERING: If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?
CYCLES AND TRENDS: Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?
SLOW TIMES: Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?
OWNERS EXPERTISE: Nobody knows everything. How do you plan to compensate for the knowledge you're short on?
Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.
Above contribution By Kenneth Larson
Sunday, November 21, 2010
Planning for Success
I am changing the name of business planning to planning for success. When I start to talk about business planning, people begin to get anxious or they glaze over. Very few get that sparkly interested look in their eye and really engage. I’ve discovered that there is a fear of business planning, mostly because business planning is foreign and unfamiliar territory. I’ll bet that when I start talking to people about planning for success, they will respond in a more open fashion, be curious and want to engage.
No matter what industry you’re part of, I’m sure that you have encountered ideas and concepts that are misunderstood. Business planning….ummmm…..planning for success is like that too. Many people say that their plan is in their head. And what there is of it may well be, but there are usually many missing elements. Just by articulating it and getting it onto paper, you provide yourself with the opportunity to read it back to yourself and see if it makes sense to you. This gives you the chance to improve on it, before mistakes are made and bad decisions have cost you a ton of money and time. No one wakes up and says. “Today I am going to make bad business decisions.” Yet, if you don’t actively engage in business planning…..ummm….planning for success….in a committed fashion, you have elected to make ill-informed decisions that may be devastating to your business.
Another misconception is that a business plan becomes a doorstop when it’s completed, or that it gets put onto the back of a deep dark shelf somewhere never to see the light of day again. Still others think that once the plan is completed that they must follow it exactly. Neither of these is correct. A businesss plan….ummmm….plan for success…..is a living document, just as your business is a living entity of its own. Going through the process of developing a plan gives you a process to follow again in the future as you consider new products, services and markets. Reviewing your plan quarterly allows you to spot variations in your projections. This gives you the time to evaluate whether your initial assumptions were off base, and if so what else is affected as you move forward. If your initial assumptions were correct, you can determine what is needed to get back on track. And as time moves forward the environment may change in ways that couldn’t have been predicted (September 11, for example). This is a good time to redirect your plan accordingly.
After you’ve been through the business planning….ummmm…planning for success process once, you’ll appreciate the new contacts and resources that have become acquainted with. You’ll also know what steps to take when you are considering complicated business decisions in the future. With a step-by-step process, you can build a solid foundation for your business and take the first steps towards success.
No matter what industry you’re part of, I’m sure that you have encountered ideas and concepts that are misunderstood. Business planning….ummmm…..planning for success is like that too. Many people say that their plan is in their head. And what there is of it may well be, but there are usually many missing elements. Just by articulating it and getting it onto paper, you provide yourself with the opportunity to read it back to yourself and see if it makes sense to you. This gives you the chance to improve on it, before mistakes are made and bad decisions have cost you a ton of money and time. No one wakes up and says. “Today I am going to make bad business decisions.” Yet, if you don’t actively engage in business planning…..ummm….planning for success….in a committed fashion, you have elected to make ill-informed decisions that may be devastating to your business.
Another misconception is that a business plan becomes a doorstop when it’s completed, or that it gets put onto the back of a deep dark shelf somewhere never to see the light of day again. Still others think that once the plan is completed that they must follow it exactly. Neither of these is correct. A businesss plan….ummmm….plan for success…..is a living document, just as your business is a living entity of its own. Going through the process of developing a plan gives you a process to follow again in the future as you consider new products, services and markets. Reviewing your plan quarterly allows you to spot variations in your projections. This gives you the time to evaluate whether your initial assumptions were off base, and if so what else is affected as you move forward. If your initial assumptions were correct, you can determine what is needed to get back on track. And as time moves forward the environment may change in ways that couldn’t have been predicted (September 11, for example). This is a good time to redirect your plan accordingly.
After you’ve been through the business planning….ummmm…planning for success process once, you’ll appreciate the new contacts and resources that have become acquainted with. You’ll also know what steps to take when you are considering complicated business decisions in the future. With a step-by-step process, you can build a solid foundation for your business and take the first steps towards success.
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