Every Successful Business Starts with a Business Plan

Every Successful Business Starts with a Business Plan

I’m sure that you all have seen the wildly inflated statistics that says that 90 percent of all businesses fail and sometimes it is higher than that. The truth is the success rate for new businesses is in the 50 – 60 percent range and I’d be willing to bet that they all had a business plan that they could rely on to provide them direction and help in the decision making process.

What is a Business Plan?

A business plan is a written description of your business goals and the steps that you are going to take to achieve those goals. It is a roadmap for the direction that your business will follow. The best business plans outline not only your goals, but also outline your ideal customers, how you will acquire those customers and a process for making them repeat customers.

Here is a great video that you should watch to learn more.


Who Needs a Business Plan?

Anyone that is starting a business as a full time venture should take the time to create a comprehensive  plan to guide them through the business startup maze. So many think that a business plan is simply for getting funding for a new venture, but it is a guide to help them to stay focused on the original intention of the business.

That is not to say that a business plan doesn’t change over time, because it does. A business plan is constantly evolving to reflect the successes and failures of the business and to continue to guide the managers in the right direction. It is extremely beneficial to have this information documented so that you can learn from former mistakes and correct your path as you go so you don’t repeat those mistakes.

Different Types of Business PlansBusiness planning

There are three basic types of business plans and each of them has a very specific purpose as we will explore below.

  • The Mini Business Plan

The mini  plan is a short 1 to 5 page plan that outlines very basic business planning and is used to test a business concept. A mini  plan usually contains these elements.

  1. Business Concept
  2. Financing Needs
  3. Marketing Plan
  4. Financial Statements
  • The Working Business Plan

The working  plan is for internal purposes and is basically a blueprint for operating the company. It can be used by managers of the business to ensure that the whole team is on the same page. It is normally much more detailed than the mini plan.

  • The Presentation Business Plan

The purpose of the presentation plan is to impress investors and possible funding options. You can take your working business plan and elevate it to a presentation plan by adding bells and whistles like product photos and resumes of your top employees. Keep in mind that the idea is to gain funding, so you are putting your best foot forward and showing the prospective investors what your business is capable of.

Business PeopleConclusion

At the end of the day, the success or failure of a particular business can depend on many different factors. The chances of success for any business increase with the adoption of a well thought out business plan. For more information on business plans visit SBA.gov.

Tips and Tricks for Creating a Startup

businessIf you think about starting a business, but you don’t know what the steps are, you’ve come to the right place. Being a business owner means a lot of things, but most importantly – it means that you have to know what you have to do and when you have to do it.

Creating your own business is the first step of becoming an entrepreneur, and you have to pay attention to several things at once, not to mention that you’ll have to take different decisions and all of them will have an impact on the future of your business.

Let’s see what you need to know on starting a business.

The Idea

This is what it all starts with – the idea of your business. You need to choose something that you know how to do – working with passion can make a big difference, and working for yourself and being your own boss will be even better. You need to choose something that you’re good at – something that you know how to do or something that you have experience in. No matter what you decide, it’s important to love your job and make a career out of your passion.

The Business Plan

This is also an important step of the way. The business plan needs to be present because it can help you find an investor or get a loan from a financial institution, especially when you don’t have the necessary funds to get it started. Apart from this, it will lay out the plan for the first few months of your activity. The business plan needs to contain all the right information about your business – the name, the location, the budget, the employees, the imagesmaterials used and even the marketing strategies.

The Budget

The budget is something that you’ll have to take into consideration from the start, as you need to have enough money to get everything started and also sustain your activity for at least a few months until the business starts producing income.

When you create the business plan, you’ll see what you need money for, so you’re going to get this into consideration too. Don’t forget that you’ll need to have something extra for emergency situations, so if you don’t have enough money, you could get a loan or find an investor. The business plan needs to be perfectly done so that you could have a chance at this.

The Location

Depending on what you want to do, you’ll need a location. Some businesses could be run from the comfort of your home – there are those businesses that don’t need a big space, like creating scented candles or hand-made items. The same goes to for those businesses that are run online – if you create websites or if you sell different items online, all you’ll need will be an office (which can be at home), a computer and an internet connection.

However, for those businesses that need a location, make sure you find something that has enough space to fit everything that you need with special equipment or anything else that is required.

Global-Business-ImageThe Employees

Don’t hire just anyone – you need to have around you people who share your passion in terms of activity. Even if all you do is sell flowers or coffee, it’s important to have someone who knows about the activity domain. The same is valid for those with whom you collaborate – the accountant, the lawyer and even the vendors.