Starting a business. One of the scariest phrases in the world to your average new entrepreneur. Why? Because it's complicated, difficult and oftentimes downright scary. What is even more scary is that most people do not understand exactly how scared of that sentence they should be. Specifically because of one word in that sentence. That word is "start".
Businesses do not fail because of lack of costumers. Or fail do to bad management. Or do to a bad product. Or bad employees. Or not enough money. Or bad luck.
IMPORTANT FACT #1: Businesses and Entrepreneurs fail because they do not start correctly. It is that simple. How a business owner starts their business, either online or brick and mortar, is 95% of the reason almost all businesses fail.
The main key idea most consumers and business owners fail to grasp is that every business, from big to small, from Walmart to Stevie's Lemonade Cart, started due to one man (or woman's) idea. Some did not have experience. Some did. Some wanted to conquer the world and/or change the lives of millions and/or make so much money they would literally have no idea what to do with it all (although most will tell you when they started they did not think that would ever be possible for them). Some wanted to simply conquer the corner of K and 1st Street. Does every business that thinks big grow big? No, absolutely not. Does every business owner who thinks small stay small. No.
What I am trying to show you here is that although the most important document in your businesses entire HISTORY will be its Business Plan, your Business Plan does not have to be set in stone or be absolutely perfect. Most business owners who fail do not get around to writing a business plan because they think it has to be perfect. Your business plan does not have to be perfect.
Why?
IMPORTANT FACT #2: Because the most important aspect of a business plan is that it MAKES YOU THINK! It makes you think about things like payroll, or financing, or things you do not have a chance to think about. It does not have to be perfect. Because the truth of the matter is there is no such thing as a PERFECT business plan. Because the perfect business plan depends on the business. It depends on the product. It depends on the owner and his or her style of doing things.
So when you are starting your business, either online or brick and mortar, stop thinking of your business plan like a fill in the blank official document. Think of it as you and your business merged together into a single document. Think of it as a written manifesto of both WHAT you intend to accomplish and HOW you intend to accomplish it.
IMPORTANT FACT #3: YOU MUST HAVE A BUSINESS PLAN!!! Do not put this off! Do not say you do not need one because your business is too small and simple or because you are still planning. IF YOU DO NOT HAVE A BUSINESS PLAN YOU DO NOT HAVE A BUSINESS!!! and you have no business running a business:).
The following is my Basic Building Blocks to Writing a Business Plan. This is guide. I am not going to go in depth here about how I start and write my business plans because to be honest it probably will not help you. These are the foundation of your business plan, what I have found needs to be in every business plan to succeed. This is just the start. Where you and your business go from here is entirely up to you:)
Planning your Business. This is the idea phase. This is were you spend all your random time thinking about how exactly your business is going to run. You should keep a notepad of paper with you at all times, and write down any and all ideas you have on the subject. This is the beginning of your business plan.
Begin to Write a Business Plan. This is where you take all the ideas you have collected so far on your notepad and begin to organize them in a Word Document (or computerized notepad of your choice;)). You should begin to include such things as Business Strategies (what exactly your business is), Financial Projections (how much money you have now, how much money you intend to have in the future (don't be afraid to think big) and where you are going to get more money to start your company) and the all important....
Marketing Plan. Although really a sub-section of and just a tiny tiny tiny bit less important then your Business Plan, your Marketing Plan should be treated with just as much importance. Why? Because this is the lifeblood of your company. This is where your money comes from, whether you are product or service based. You should include such things marketing strategies, advertising strategies, and promotional strategies (and yes, they are different things).
Who your mentor (or mentors) are going to be. Yes. Your business plan should include who you look up to. Why? Because who you are learning from, studying from, and taking information from plays a HUGE part in what your business is going to become. You can include anybody from world famous people you will most likely never talk to to your own parents. They are your mentors, you choose.
How you are going to finance your small business. This section is incredibly important, because it forces you to do research on where you are going to get your money from. You have options such as Venture Capitalists, Banks, and your own family. Do not be afraid to beg money from your blood relatives. If you have a good business plan (which proves you are not just simply looking for cheap money;)) you might get better results then you think.
The Name of your business. This is a incredibly important part of your business. This is something you CANNOT change, and it will be how and WHY people buy from you. It's a very public display of who you are and who your business is.
Choose a structure. This is important both from a tax standpoint and also a legal liability standpoint. The main 5 options are: Sole Proprietorship (single owner, full liability), Partnership (two or more owners, full liability), Corporation (no liability, expensive and very complicated to set up), S Corporation (only easy difference is for tax reasons), and Limited Liability Company or LLC (created to provide Small Business Owners and Partners removed liability for there businesses. Most popular if your are going to go big:)) I will go in depth into all of these later but for more information check out http://www.sba.gov/smallbusinessplanner/start/chooseastructure/index.html
Protect your ideas/name/inventions/whatever it is your business is doing. You need to know which permits, licenses, etc you need to run and operate your business. Check with your local area chamber of congress and local division of the SBA to find out more.
Who your competition is. You need to research and find out about your competition, even if they are not doing exactly what you plan to do. Why? Because if they are competition that means they ARE AT LEAST SEMI-SUCCESSFUL!!! Which means you need to LEARN from them. *WARNING* Inside secret secret to being successful about to be revealed! I always include one of my biggest competitors on my mentor list in my business plan. Why? Because then it forces me to go and learn from that person, even though we will probably never speak and he or she will never openly give me information about their business. So many people forget this that it makes me just scratch my head as to WHY. These people are doing what you want to do and they are doing it AT LEAST semi-succesfully. So study from them. Learn anything and everything you can. If you do that, then one day you will be better then them:). Most likely they will have to start studying you;).
So that's it for now. Don't worry, I have a TON more articles planned on every aspect of creating your business, both online, store front, and even out of your own house. Stay tuned and GOOD LUCK!!!
To learn more top secret information about starting your own small business visit the Ultimate Wealth Experts at [http://www.ultimatewealthexperts.com]
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