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STARTING A BUSINESS

Starting a business and developing your business strategies can  be very difficult.  Especially if you have little business knowledge and experience.  That is one reason business planning for a new business start-up is so important.  Without it, you will  surely arrive, but where?

A good business plan forces you to think through every scenario and helps you determine the correct business model: quantity, price, quality, service.  You should only choose two, such as: quantity & price (Walmart), quality & service (Neiman-Marcus).  You can choose to mix them anyway you want; however, keep in mind that you cannot be everything to everyone. Choose the model that best fits your desire for long term planning.  

Developing a comprehensive market analysis to determine how many customers are available to you and where they are located could save you years of regret from picking the wrong location and business model.  Thorough market research can help you develop realistic revenue and cash flow projections and a realistic start-up expense schedule will help you determine your need for capital.   Realizing that financial institutions, as a norm, may only participate up to 70 to 80% of total capital requirements will help you compute your personal contribution to your startup. 

One of the major reasons for failure in business is lack of capital.  For some reason more than 57% of all people who start businesses fail to recognize the need for capital.  They tend to start their businesses on a shoe string, hoping cash will somehow come pouring in.  Build it and they will come may be true for  baseball, but realistically, it is a pipe dream.  Ask anyone who has tried it.  Don't be a statistic - make sure you have a realistic plan.

Excellent business planning software is now available at very reasonable prices and most will walk you through the planning process step-by-step.  If you are not familiar with business law, accounting, and  other business processes necessary for creating your plan, we will be glad to assist you, one-on-one.  Call or email us today.

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