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Planning Your Small Business
Success often depends on good quality planning
because a plan helps turn the unknown into
the expected. Unless you have prior expertise
in developing successful business plans,
especially for the type of business that
you intend to start, you should consider
enlisting professional help.
The issues that you should address
in your
business plan include:
- what and how much you intend to sell, whether
products or services.
- how you will reach, win, and retain customers
(marketing plan).
- how you expect to set the prices that you
will charge.
- how you will make your products or render
your services.
- who your competitors are (competitive analysis)
and how they are likely to react to your
business.
- what you expect your revenues and expenses
will be (financial plan).
- what you will need in terms of staff, buildings,
equipment, and inventory.
- how much credit (loans) you will need and
how and when you expect to pay it back.
- what government regulations and tax laws
you must comply with.
- how much of your time this business will
require, and how long you can subsist on
savings before the business earns enough
for you.
- possible obstacles and how you will deal
with them.
- what circumstances will constitute failure
and what circumstances will constitute success.
- your "exit plan" for leaving the
business, to retire, pursue other interests,
or because the business did not succeed as
planned.
When seeking help with business
plans, look
for a professional who:
- has experience in the industry or field that
you are entering. Inevitably, you will face
industry-specific issues that someone who
has only a general knowledge of business
cannot anticipate, never mind advise you
about.
- has a track record of helping to launch successful
entrepreneurs. Get references and talk to
them. See how satisfied they are.
You might also turn to someone who will be
a part of your future back office. See our
discussion on the back office for more information. |
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