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The Business Plan
The failure rate of many small businesses is high. There are a number of reasons for this and this hub will focus on one of them, the business plan, or all too often the lack of a business plan.
A brilliant idea is born one night when you are sitting at home dreaming about running your own business. It is a remarkable idea, and you wonder why you have not thought of it before.
You leap from your comfy chair in front of the TV set and hurry over to your computer to jot down a few ideas and maybe do a little research.
A good start; next you look over your current financial situation and determine what funds you have on hand to invest in this brilliant idea.
Then you determine how much time you have to invest. If you need to keep your current job this will restrict the time and energy you have to develop your own business.
If you need outside funding, lenders will want to see some proof that you have thought this idea through, and have all the components to make it work. They will be most interested in whether you can actually generate any revenue.
Have you researched the competiton, you say there is no competiton, do you know why?
Who will buy your product or service? Why and what are they willing to pay?
The above questions are only a few of the things that you will need to know if you want to have an opportunity to succeed. You may convince family to invest with a sketchy plan but they and you are taking a risk and if, and the odds are high, the business fails, the relationships will change.
You will not get investors on board without a detailed plan.
Among, the most important questions that you need to answers are:
What are you selling?
Who will buy it?
What will they pay?
Who is the competition?
How will you market your product or service?
The accompanying videos will walk you through the development of a sound business plan. The old adage that people don’t plan to fail but fail to plan holds true hereand the time and effort spend developing a business plan can save considerable grief further own the road.
Over the years I have written several business plans for myself and the result of one lead me to forgo the business as the marketing study showed that the return we could expect was not worth the effort.
This wastime well spent as it prevented me from undertaking an idea, an herb business, that I loved, but one that given the available resources was not going to generate a profit.
Other plans have enabled me to work for myself for nearly ten years nowand that is what it is all about for me, being my own boss. Whatever, your dream is do not toss it away by failing to plan or by creating a plan that does not ask the required questions.
The Business Plan
How to Write a Business Plan
- Writing an Effective Business Plan: Page 1 - Introduction
Need to write a winning business plan? This article will teach you how to do just that.