Tuesday, October 17, 2017
Start a Business

Start a Business

Getting Ready

Starting and managing a business takes motivation, desire and talent. It also takes research and planning. Like a chess game, success in small business starts with decisive and correct opening moves. Although initial mistakes are not fatal, it takes skill, discipline and hard work to regain the advantage.

To increase your chance for success, you should take the time up front to explore and evaluate your business and personal goals. Ask yourself the following questions, your answers will help you in the process of developing a business plan.

Determine what business is "right for you"

What do I like to do with my time?
What technical skills have I learned or developed?
What do others say I am good at?
How much time do I have to run a successful business?
Do I have any hobbies or interests that are marketable?

Identify the niche your business will fill.

Conduct the necessary research to answer these questions:

Is my idea practical and will it fill a need?
What is my competition?
What is my business advantage over existing firms?
Can I deliver a better quality service?
Can I create a demand for your business?

This is your final step before developing your plan.

You should answer these questions:

What business am I interested in starting?
What services or products will I sell?
Where will I be located?
What skills and experience do I bring to the business?
What will be my legal structure?
What equipment or supplies will I need?
What financing will I need?
What are my resources?

This is your blueprint. It should detail how the business will be operated, managed and capitalized. A CPA (certified public accountant) in our team would help you determine whether your business would operate as a Sole Proprietorship, Corporation or Partnership.

Understanding and Writing a Business Plan

Below is a typical business plan; it can serve as a guide for you to adapt to your specific business.

• Introduction

Give a detailed description of the business and its goals.
Discuss the ownership of the business and the legal structure.
List the skills and experience you bring to the business.
Discuss the advantages you and your business have over your competitors.

• Marketing

Discuss the products/services offered.
Identify the customer demand for your product/service.
Identify your market, its size and locations.
Explain how your product/service will be advertised and marketed.
Explain the pricing strategy.

• Financial Management

Explain your source and the amount of initial equity capital.
Develop a monthly operating budget for the first year.
Develop an expected return on investment and monthly cash flow for the first year.
Provide projected income statements and balance sheets for a two year period.
Discuss your breakeven point.
Explain your personal balance sheet and method of compensation.
Discuss who will maintain your accounting records and how they will be kept.

• Operations

Explain how the business will be managed on a day-to-day basis.
Discuss hiring and personnel procedures.
Discuss insurance, lease or rent agreements, and issues pertinent to your business.
Account for the equipment necessary to produce your products or services.
Account for production and delivery of products and services.

Once you have completed your business plan, review it with our experts and counselors. When you feel comfortable with its content and structure, then it's time make an appointment to discuss it with a lender.

The business plan is a flexible document that it should change as your business grows.