Why You Need to Have a Business Plan

Every business needs to have a properly developed business plan that showcases every aspect of its venture. However, it should be noted, that you can only do so much “looking forward” when it comes to entrepreneurial activities. In any business venture, you are going to encounter a number of surprises that you never saw coming. As such, when you are developing your business planning documentation, you should primarily focus on the market in which the business will operate, the anticipated profits of the business, how you will manage the cash flow on a day to day basis, implementation of your marketing plan, and what to do if the proposed venture does not going as planned.

Typically, when you are drafting this type of document, you are going to want to create nine distinct chapters that will provide you with a complete overview of your business. These chapters include an executive summary, the usage of financing, products and services analysis, an overview of the organization, strategic market analysis, competitive analysis, marketing plan, personnel plan, and a full financial plan.

Although not often completed by people that are writing business plans, you should also include an analysis that lists the strengths, weaknesses, opportunities, and threats that you business will face. Also, you may want to draft a section that thoroughly examines the critical risks and problems that your business may have as your progress through your venture’s operations. This includes discussing the risks relating to starting your business, financing risks, marketing risks, competition that will you will face, and other issues that may impact the way that you do business.

Also very important within your business plan is to discuss the potential exit strategies that you will use when you decide to sell your company. You may want to discuss hiring a business broker or small mergers and acquisitions based investment bank that can assist you in providing a valuation of your business while concurrently marketing the company to potential buyers. As with any business, ultimately you are going to want to earn a substantial profit from the sale of the company once you decide to retire or move on to a different business venture. Often when discussing exit strategies, you should also focus on what would need to be completed to transition the business to a new owner.

Finally, the last section of your business plan should include a one to two page conclusion. Here, you should outline all of the positive aspects of your business while also showcasing the risks and problems that you may face. If you are able to properly develop all of the aforementioned aspects of your business plan then you will have a very good understanding as to whether or not you should start this business. On a side note, if you are applying for any type of financing then you will be required to produce this document to show to your banker or a potential investor.

To Do List For Every Entrepreneur That Desires To Build A Big Business

Most entrepreneurs wonder why after they have set up their business, it seems to stall after a few good years. They seem to get stuck. It seems like the more effort they put in, the more the business seems to stagnate. Their major mistake is that they try to establish their business with the same strategies they used when they started the business.

Principles established by studying big businesses that have lasted for centuries have shown that there are basic lessons every young business owner must learn in other to move his or her business to the next level.

When Jesus was starting his business on earth, he sent out his staff in pairs and gave them the basic principles a start up business must use to kick start their business. He told them to go straight to the lost sheep of the house of Israel.

They were not to go to any gentile town. This tells us that when we start a business we must focus on a specific target group that we want to capture. We must not waste any resource or time on any other group that does not meet our immediate customer specification. We must not go to everybody we see. This will help us avoid wasting resources.

He then told them specifically what he wanted them to market to their target customers. He gave them specific goals. These were to preach, heal the sick, raise the dead and cast out demons. They must focus all their attention on only these core goals.

This shows us that we must give our staff specific missions or goals that we want them to achieve. We must never send out our staff believing that they know what to do. If you do not tell your staff what you want from them, they will give you what you do not want from them.

He told them that freely they received what they were going to market and freely must they give. As a new business, you must render a lot of free services. You must train your people to render services without expecting any personal gratification. A new business essentially must offer a lot of freebies and excellent customer service.

He asked them not to go with any money, bag, extra clothing, shoes or staff. He is essentially telling young business owners to be ready to launch off with whatever they have. Lack of money or any other resources must never be excuses why you or any of your staff fail to kick start your business operation.

He also ask them to make do with whatever accommodation that was offered to them. They must eat whatever was offered them. To a young business owner, Jesus was trying to tell them that you must build a personal relationship with your customers. Do not despise where they live or what they eat.

You must make yourself comfortable in their environment while you try to sell them what you have to offer. He also said that they should depart from those who fail to accept them. This means that you must never waste your time with any customer whom you can see has already made up his mind not to patronize you. You must know that there will be a lot of other people who are willing to patronize you. So, do not waste time with a bad customer. Move on to the next person.

With the above mindset, any business man can be assured of starting a viable business.

Amazingly, towards the end of his ministry, Jesus gave his staffs another set of rules that seem to contradict his earlier instructions to them. He told those of them who do not have money bags to go and get one. They were to get traveling bags which he had earlier told them not to get. He had earlier told them not to move out with even a walking stick but now he asked them to go and buy swords. In fact he told them to even sell their clothes to use the money to buy weapons.

He was trying to teach them and all business owners how to firmly establish your business when you start to generate positive results. At this point, Jesus was trying to teach that a successful business needs another set of principles to save it from collapse.

First, a good business that wants to move to become great must build up cash reserves. This is signified by the money bag. The good business seeking to become great must build its cash reserve up so that it could be able to take advantage of opportunities that may come up.

Berkshire Hathaway is acknowledged as a great company. It achieved it greatness by building up an immense cash reserve which it deploys during periods of recession to save itself and to acquire other companies. Microsoft and Apples computer are to companies that have built up immense cash reserves in their match to greatness.

They must have traveling bags. To move to greatness, you must have contingency plans. You must store up plans that you can use to move to another location when there is an urgent need to move. Finally he asked them to buy swords. If you must attain greatness, you must acquire weapons to depend yourself.

In the business world, these weapons include Lawyers, accountants, public relations team and security team.

You must have all these weapons in place. If you do not, another company will sue you and take all you have. The Tax authority can ruin you if you do not have the best accountants and auditors. When you lack a public relations team, an innocuous sounding rumor will destroy your company. So, you must have all these weapons in place and they will ensure your greatness.