Starting a Business - What is a Business Plan?
- by William King
- Published on 7/24/08
- Article views: 75
So you've decided to start your own business - congratulations! It's a huge leap from letting someone else take care of taxes, accounting, payroll, inventory, and/or a myriad of other activities necessary to run a business. However, running your own business has its advantages, too. You get to be your own boss, set your own hours and days to work, and are responsible for your own success. It can be a great way to free yourself from the tedium of 9-5 and work at doing what you love, but you have to begin by asking a few questions:
1. Are you doing what you love, or just doing something you're good at? A desire to get away from the regular working world can be a good motivation to work for yourself, but you have to be excited to get up in the morning to do what it is you have chosen to do for a living.
2. What is it you are planning to do? What niche is it going to fill? Is there a need for what you can provide? Will the market bear another entry?
3. What technical skills or talents do you have? Just being able to do something may not be marketable enough to convince customers or financiers that you are a good financial investment.
4. Who are your competitors in your chosen profession and how are you going to do it better? Why should customers come to you? What do you have to offer that no one else does?
Once you are satisfied with the answers to these questions, it is time for the decision of what kind of business structure you will use. Will you be a sole proprietor, responsible for every facet and the penultimate authority as to how to run the business? Will you enter in with a partner, the better to share the cost and workload, but also the profits and the business decisions? Perhaps the decision will be made to incorporate, with its financial safeguards but more complex and costly structure? At this stage, legal advice is recommended, if only so that you fully understand the advantages and disadvantages of your chosen structuring plan. Many lawyers will provide a free or reduced-rate primary consultation, though often not more than an hour. When the structure is finalized, a name for the business should be decided upon, if not already having been done so in advance. It should be easy to remember, avoid initials and single letters (B & L & R, Inc. will be difficult to remember for customers) and try to say something about the business (Bob's House of Hobbies is easier to remember and spell).
Next, a business plan is a vital step in laying out all these topics and proposals in a standardized format. A good business plan serves as a formal statement of the new company's goals, financing, structure and legal considerations. It acts as a 'resume' to prospective investors and is the primary documentation they will use to evaluate whether or not your business will be worth investing into. It also provides the proprietor(s) with a chance to see the workings of the new business in black and white. A basic business plan should at the least contain a balance sheet, income statement and statement of cash flow, as well as a proposed financial budget for the first year, or as long a period as necessary if a year is impractical.
So with these quick tips, plan for success, and good luck in your chosen endeavor!
William King is the director of UK Wholesale Suppliers, Dropshipping Directory and Pakistan Property Portal . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
More Articles
-
-
-
» Latest articles
-
» Highest rated articles
- Starting a Business - What is a Business Plan?
This article deals with key decisions involved with starting a business and the advantages of having you own business. Furthermore it throws light on the various kinds of business structures and how a successful business plan should be laid out.
- How to Grow your Business Internationally
Whatever the reason you begin to explore international expansion for your company, a weak US dollar, growth in emerging markets, or the desire to tap into global pools of talent and resources, it is crucial that the decisions you make in the early stages of international business development are made from a fully informed position.
- How To Run Your Commercial Cleaning Business
Starting any kind of business can be scary, no matter what it is. It can be a great experience or a terrifying one. It might even be both. If you're new in the business world and have just started your own commercial cleaning business or are thinking about it, the part that you might have not considered is how to run one. Yes, the daily grind of being a business owner. It will be a daily grind that is challenging, exciting but best of all, yours.
- Starting a Business - What is a Business Plan?
This article deals with key decisions involved with starting a business and the advantages of having you own business. Furthermore it throws light on the various kinds of business structures and how a successful business plan should be laid out.
- Great Employees Are Like Fine Restaurants
You're out on the town with some good friends hoping to have a great dinner and a memorable evening. There's a diner on the corner and a great Italian restaurant down the street. Which one are you going to choose?
- Great Employees Are Like Fine Restaurants
You're out on the town with some good friends hoping to have a great dinner and a memorable evening. There's a diner on the corner and a great Italian restaurant down the street. Which one are you going to choose?
- How to Grow your Business Internationally
Whatever the reason you begin to explore international expansion for your company, a weak US dollar, growth in emerging markets, or the desire to tap into global pools of talent and resources, it is crucial that the decisions you make in the early stages of international business development are made from a fully informed position.
- Starting a Business - What is a Business Plan?
This article deals with key decisions involved with starting a business and the advantages of having you own business. Furthermore it throws light on the various kinds of business structures and how a successful business plan should be laid out.
- Starting a Business - What is a Business Plan?
This article deals with key decisions involved with starting a business and the advantages of having you own business. Furthermore it throws light on the various kinds of business structures and how a successful business plan should be laid out.
- How To Run Your Commercial Cleaning Business
Starting any kind of business can be scary, no matter what it is. It can be a great experience or a terrifying one. It might even be both. If you're new in the business world and have just started your own commercial cleaning business or are thinking about it, the part that you might have not considered is how to run one. Yes, the daily grind of being a business owner. It will be a daily grind that is challenging, exciting but best of all, yours.
- Types And Uses of Medieval Armor
The earliest form of medieval armor -- mail (a.k.a. 'chain mail') -- traces its origins back to around 500 BC. The Celtic people developed this kind of armor -- iron rings woven together into a protective garment -- and the Roman Army later copied this engineering to protect its soldiers.
- Know About Otitis Externa
Otitis extern is a common problem of the ears. The inflammation occurs in the outer era canal and affects the tube that is located in between the ear drum and the surface of the external ear. This disease is commonly known as swimmers ear. Generally bacterial growth of the fungal infection can cause this problem.
- Diamond Color Grading Scale
Diamonds come in virtually all colors of the rainbow, from the 'beautiful violet' of the Hope diamond to shades of blue, brown, gray, orange, etc. But colored diamonds are very rare and precious. Chances are, all the diamonds you'll see in your diamond shopping will be white or yellow, and the whiter the better. Some people are more sensitive to the color of diamonds.
- Should Alcohol Ads be Banned on Television And Internet?
It is hard to battle alcohol addiction when television seems to urge people to drink. Alcohol and liquor ads are everywhere. Even if you browse the internet, you will find loads of alcohol ads. These ads are very encouraging. They cover up the many warnings of the harmful effects of alcohol in the body.
- Is there a reason that American Football is not an Olympic sport?
Has it ever surprised you that one of the greatest sports in one of the greatest nations is not shared with the rest of the world? This article is meant to point out some of the peculiar reasons that it might not qualify for any future Olympic Games.
- Ecommerce Checkout - Make Them Register
The world of ecommerce is expanding daily as more and more retailers take their business to the web in the hopes of attracting a percentage of those ever finicky web shoppers. As the amount of businesses open up ecommerce shops online, the amount of web development companies is also growing, offering ecommerce solutions for even the smallest of budgets. It is important that web developers understand the dynamics of the checkout process when discussing the options with the client.
- Common mistakes before starting a website
If you want your website to be a big hit then you need to avoid some common mistakes before starting one. Here you have a list of pitfalls that are designed for beginner and for many established ones too. Check out the common mistakes that have to be avoided for sure!
- How to Create a MySpace Layout
Creating a MySpace layout might seem tricky when you think about it but it is actually pretty easy. Here's a few steps that will help you in designing myspace templates.
- Reiki and how it can help you Heal
Reiki is a valuable healing tool which involves the practitioner placing his or her hands on the client without actually manipulating the body in any way. This makes Reiki an ideal healing tool for people who suffer from all kinds of conditions, both physical and emotional. This article discusses what is involved in a Reiki session and what training a Reiki practitioner undergoes.
- A History of Vintage Automobiles - From 1916 to 1924
Before cars were around, people usually traveled distances using horse-drawn carriages. But as early as 1335 several bright minds have been trying to come up with a 'horseless carriage'.
