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 Start-Up. Show all posts
Showing posts with label Small Business Start-Up. Show all posts
Monday, July 9, 2012
Thursday, March 29, 2012
Is Now A Good Time To Start A Business?
When is the right time to start a business?
Let me ask you .... what do the following have in common?
Hyatt Corp
Burger King
Hewlett- Packard
The Jim Henson Company
The Dyson Company
Fedex
Microsoft
CNN
MTV
Walt Disney Corp
Yes....they are all successful businesses. Yes....they are all world leaders, their names as familiar in Beijing, Dubai, and Mumbai as they are in London, Paris, or New York. Yes…their brands are synonymous with the best in the business. BUT... did you know they were all born out of world recessions? In fact Disney was incorporated in 1929 the year of the Great Depression....and he even called it "The Magic Kingdom". That shows courage!
Great companies are born when they are born....great ideas, great leaders, great vision equals great success. BUT, it all starts with a great attitude .
The same is true for us as individuals who are not running a multi national corporations. Yes…we are certainly living in uncertain times and it easy to become discouraged by the media, by politicians, by the ‘bad news’ stories and even by those around us. Remember however that even the most successful people have traveled a hard road. Did Bill Gates or Walt Disney face difficulty and challenges – you bet they did. Did they ever give up. You bet they didn’t.
Like Michael Jordan,the successful sportsman says ‘ I've failed over and over and over again in my life and that is why I succeed.’
Hardship and failure is never a barrier. Attitude is all important....and I am talking from personal experience.
My question to you is....do you want to do it too? Do you want success?
To start off your success mind set here is my request....
From now on banish the word "can’t" from your vocabulary, your thoughts and beliefs. What do you feel when you say the word "can’t"? Weak? Powerless? Negative? Despondent? So why keep saying it?
Repeat "I will find the ideal partner", "I will find the perfect job", "I am ubelieveably fortunate", "I will drop 20lbs". Now how do you feel?
All the creators of the businesses we have spoken of have a success mindset. Start cultivating yours today and you’ll soon see that the "magic" is not only reserved for the Disneys of this world.
Let me ask you .... what do the following have in common?
Hyatt Corp
Burger King
Hewlett- Packard
The Jim Henson Company
The Dyson Company
Fedex
Microsoft
CNN
MTV
Walt Disney Corp
Yes....they are all successful businesses. Yes....they are all world leaders, their names as familiar in Beijing, Dubai, and Mumbai as they are in London, Paris, or New York. Yes…their brands are synonymous with the best in the business. BUT... did you know they were all born out of world recessions? In fact Disney was incorporated in 1929 the year of the Great Depression....and he even called it "The Magic Kingdom". That shows courage!
Great companies are born when they are born....great ideas, great leaders, great vision equals great success. BUT, it all starts with a great attitude .
The same is true for us as individuals who are not running a multi national corporations. Yes…we are certainly living in uncertain times and it easy to become discouraged by the media, by politicians, by the ‘bad news’ stories and even by those around us. Remember however that even the most successful people have traveled a hard road. Did Bill Gates or Walt Disney face difficulty and challenges – you bet they did. Did they ever give up. You bet they didn’t.
Like Michael Jordan,the successful sportsman says ‘ I've failed over and over and over again in my life and that is why I succeed.’
Hardship and failure is never a barrier. Attitude is all important....and I am talking from personal experience.
My question to you is....do you want to do it too? Do you want success?
To start off your success mind set here is my request....
From now on banish the word "can’t" from your vocabulary, your thoughts and beliefs. What do you feel when you say the word "can’t"? Weak? Powerless? Negative? Despondent? So why keep saying it?
Repeat "I will find the ideal partner", "I will find the perfect job", "I am ubelieveably fortunate", "I will drop 20lbs". Now how do you feel?
All the creators of the businesses we have spoken of have a success mindset. Start cultivating yours today and you’ll soon see that the "magic" is not only reserved for the Disneys of this world.
Monday, March 19, 2012
Tips For Starting A Small Business
When starting a small business there's much to think about. Here's a few tips to help you focus in on what is important.
Understanding your market is important, in that by doing so you will not only generate business, but understand how much profit you can expect to make on your sales.
Don't be shy about making a profit- it's why most of us are in business. If, for example, a customer says they can "get something cheaper at XYZ giant retailer", explain to them the advantages of your products/services, and that you are not in business to compete with XYZ. Even if the products you offer are similar, you probably have advantages in personal service, location, shopping convenience, etc. If the customer is insistent that price is the key to their decision, as a business owner you need to decide if their business will generate an acceptable profit, or if you should walk away. Keep in mind that if you cut your price word will spread and it will be difficult to recapture your present price level. Generally our policy is to offer specials on a limited selection for a fixed time, to generate new business. We don't cut our prices in response to isolated comments.
If you are a retailer, do invest as much as you can afford in a point of sale system, preferably a fully integrated one. A good system enhances your ability to manage your business in several ways- customer service, inventory management, and pricing to name a few.
Do gain a good handle on your business processes- purchasing, accounting, inventory control, pricing and gross margin. Marketing and customer service are critical, but increasing sales doesn't benefit the business unless those sales are generating bottom-line profits. Set realistic goals not only for sales volume, but also for average gross margin, inventory turns, shrinkage, spoilage/obsolescence, operating expenses, etc. This will refer back to the business plan George mentions above. Monitor at least quarterly, if not more frequently.
Engage people with complimentary skills in your business. If you are a marketing/customer service oriented creative person, engage a number cruncher. You'll enjoy the business more and avoid pitfalls.
Understanding your market is important, in that by doing so you will not only generate business, but understand how much profit you can expect to make on your sales.
Don't be shy about making a profit- it's why most of us are in business. If, for example, a customer says they can "get something cheaper at XYZ giant retailer", explain to them the advantages of your products/services, and that you are not in business to compete with XYZ. Even if the products you offer are similar, you probably have advantages in personal service, location, shopping convenience, etc. If the customer is insistent that price is the key to their decision, as a business owner you need to decide if their business will generate an acceptable profit, or if you should walk away. Keep in mind that if you cut your price word will spread and it will be difficult to recapture your present price level. Generally our policy is to offer specials on a limited selection for a fixed time, to generate new business. We don't cut our prices in response to isolated comments.
If you are a retailer, do invest as much as you can afford in a point of sale system, preferably a fully integrated one. A good system enhances your ability to manage your business in several ways- customer service, inventory management, and pricing to name a few.
Do gain a good handle on your business processes- purchasing, accounting, inventory control, pricing and gross margin. Marketing and customer service are critical, but increasing sales doesn't benefit the business unless those sales are generating bottom-line profits. Set realistic goals not only for sales volume, but also for average gross margin, inventory turns, shrinkage, spoilage/obsolescence, operating expenses, etc. This will refer back to the business plan George mentions above. Monitor at least quarterly, if not more frequently.
Engage people with complimentary skills in your business. If you are a marketing/customer service oriented creative person, engage a number cruncher. You'll enjoy the business more and avoid pitfalls.
Thursday, January 21, 2010
Pearls Of Wisdom For Fledgling Entrepreneurs
The first thing that you must do is get a mentor. This is the person that you go to with all of your questions, concerns and anxieties.
Find several business owners who are doing what you want to do and interview them. Ask them how they got started, and do they have any suggestions or warnings for you.Tell them to give it to you straight. Find out from these business owners if this idea will sustain you financially.
Assemble your team: accountant, lawyer, web designer, marketing, sales coach and support group(s), etc. You will need support groups to bounce ideas off of, and hear ideas that are working in other areas of business that might work in your area of business.
Attend conferences and trade shows in your area of interest. Attend meetings and conferences at your local Chamber, BNI, etc. Do not join any groups or organizations until you have visited them at least twice to get a feel for the type of people that are in the group.
Be ready for looooong hours of research and product/service preparation. It won't happen overnight....be patient.
Does your product/service sell itself? Can you sell? If you can't you will need a sales coach.
You must have a business plan, and someone to show you how to market your product/service.
Here are a few more items you might like to ponder:
1) There are some dreams you need to follow, and others you need to wake up from.
2) You only lose when you quit.
3) And the old Kenny Rogers advice:
Know when to hold 'em
Know when to fold 'em
Know when to walk away
And KNOW WHEN TO RUN!
Find several business owners who are doing what you want to do and interview them. Ask them how they got started, and do they have any suggestions or warnings for you.Tell them to give it to you straight. Find out from these business owners if this idea will sustain you financially.
Assemble your team: accountant, lawyer, web designer, marketing, sales coach and support group(s), etc. You will need support groups to bounce ideas off of, and hear ideas that are working in other areas of business that might work in your area of business.
Attend conferences and trade shows in your area of interest. Attend meetings and conferences at your local Chamber, BNI, etc. Do not join any groups or organizations until you have visited them at least twice to get a feel for the type of people that are in the group.
Be ready for looooong hours of research and product/service preparation. It won't happen overnight....be patient.
Does your product/service sell itself? Can you sell? If you can't you will need a sales coach.
You must have a business plan, and someone to show you how to market your product/service.
Here are a few more items you might like to ponder:
1) There are some dreams you need to follow, and others you need to wake up from.
2) You only lose when you quit.
3) And the old Kenny Rogers advice:
Know when to hold 'em
Know when to fold 'em
Know when to walk away
And KNOW WHEN TO RUN!
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