Why Write a Business Plan?
You are thinking that you and other entrepreneurs you know have never developed a business plan and you are doing "ok" -- right? Well, here is the big secret -- you can always do better.
I know for me -- "ok" simply is not good enough. You may think this is normal for a first time entrepreneurial adventure. But what if I told you that Carl has started many companies in his year tenure as an entrepreneur? And with all the companies Carl started, none of them have ever exceeded revenues of a million dollars.
Many of them failed and Carl was forced to shut them down within the first year of business. Does this mean Carl is a terrible businessman? What it means is Carl did not understand the purpose and the value in creating a business plan.
And unfortunately this is pretty typical of many entrepreneurs. They think flying by the seat of their pants and relying on their street smarts and intuition is the spirit behind entrepreneurship.
This could not be further from the truth. If you don't plan for growth. Now I know what you are thinking. You are thinking that you and other entrepreneurs you know have never developed a business plan and you are doing "ok" - right?
Well, here is the big secret - you can always do better. I know for me -- "ok" simply is not good enough! And if you don't plan for growth you may grow, but chances are good you will not be able to sustain it. Planning for growth is essential.
According to Price-Waterhouse-Coopers, two-thirds of CEO's of fast growth organizations develop some type of business plan. It is actually the exercise of drafting the business plan that is important -- sometimes more important than the plan itself. Writing a business plan forces you to focus on the important and essential elements of your business.
It makes you think through your next steps and specific strategies and tactics. But most importantly it forces you to face the facts. Because the most important element in success is this: This does not mean when the facts suit you -- it means all the facts all the time.
I know so many entrepreneurs and business owners who make excuses for all the failures within their business. Sadly so many of those failures could have been avoided with the construction of a business plan. Within the overall outline of the business plan, the executive summary will follow the title page.NFIB is America's leading small business association, promoting and protecting the right of our members to own, operate, and grow their business.
Use these tips, resources, and real-world examples from experts and other small business owners to help you run and grow your small business. The trick to writing about your business's human resources needs in the management plan section of your business plan is to be able to describe your human resources needs specifically.
To write something such as, "We'll need more people once we get up and running" will impress no one. Sep 19, · Watch video · The proceeds can be earmarked in your estate plan to meet business obligations and thereby spare your loved ones from having to conduct a fire-sale of the business.
Financial Aspect of Business Vocab.
STUDY. PLAY. Capital. the monetary funds invested in a project. Equity Capital. money raised from within the company or by selling part of the company interest. Debt Capital. money raised by borrowing money to be repaid later.
Credit Union. To get more information on government regulations related to licenses, permits, registrations etc. for a specific line of business, check with related trade associations, business colleagues and experienced consultants. It is best to hire an attorney to go through all documentation, plans and papers related to the legal aspects of your business.
To decide what form is best, you will need to consider liability issues associated with your business and which form will provide the best tax structure for your business. Business Licenses. Depending on what type of business you plan to engage in, you may need a variety of licenses or permits.