| Developing a business requires
a blueprint. There has to be a channel for the ideas and goals of the
business to pass through. Unless you can define on paper what the
business goals are and how they should be achieved you should not start
a business. The plan becomes a vehicle of achievement that takes a
vague idea or desire and turns into a successful business venture.
Despite the importance of a business plan, many
entrepreneurs drag their feet when it comes to preparing a written document.
They argue that their marketplace changes too fast for a business plan to be
useful or that they just don't have enough time. But just as a builder won't
begin construction without a blueprint, eager business owners shouldn't rush
into new ventures without a business plan. The basic components of a business plan includes a current and pro
forma balance sheet, an income statement, and a cash flow analysis. A
written business plan helps to allocate resources properly, handle unforeseen complications, and
facilitate the business decision process. Because it provides specific and organized information about
your company and how you will repay borrowed money, a good business plan is a
crucial part of any loan application. Additionally, it informs sales personnel,
suppliers, and others about your operations and goals.
Ninety percent of new businesses fail. Most do so because they lack specific
direction. In one survey, out of 29,000 businesses started, 26,000 of them
failed. Of the failures: 67 percent had never written a business plan; 57
percent had no outside guidance; and 71 percent hadn’t taken any business
courses.
Question the value of your business development ideas before implementation.
Some questions to ask and answer:
Is the business idea a good one? What is the best
business model to use? Is the business model manageable? Is
there adequate funding for the business? What is the long-term
business strategy? What is the exist strategy? The
answers to these questions will put you a path to building a strong business.
Here's some helpful Links
Business Week--Plenty of good info on business trends,
economy.
Business Resource
Center--Worthwhile collection of articles on small
business issues.
Inc.com--Web
version of Inc. magazine
America's Small
Business Center--Links to credit checks, loan
applications, more.
National Federation of
Independent Business
The National Association for
the Self Employed
National
Business Incubation Association
|
