Business Planning
It seems so simple-decide where you want to go and then follow the map to get there. This simple concept is the cornerstone of small business success. Small business is a risky opportunity, one, which has the potential for great dividends. Small business ownership is a thinking endeavor that requires you as the entrepreneurs to know not only that you want to own a business, but what the business will be, how it will operate, and what results you expect short term and long term.
The bottom line about small business ownership is this is your livelihood. For many entrepreneurs business ownership is a dream. A dream that millions of Americans have made a reality. To take the step from dream to reality, begin with the basics. A business
Plan and start-up capital are two basic elements of a small business start-up. The business idea needs to be stated in clear terms, in writing. This clarifies the purpose of your business for you and for potential investors or lenders.
If you plan to obtain a bank loan or Small Business Administration guaranteed loan to help start your business, you will need a business plan. The business plan addresses your plan for doing business and exactly how the money will be used to finance the business, operate the business, provide an owner’s salary and define the net profit resulting from the business enterprise. Banks will generally require the business plan and information about start-up capital you-the entrepreneur-are bringing to the business. The more clear and thorough your plan, the better your chances for obtaining credit.
About 30 percent of the population is thinking about opening a business. Of those individuals about 4 percent actually go into business for themselves. If you want to make a commitment to being your own boss, begin by investing your time in developing a business plan. Through the business plan you are testing your idea, calculating how much you will have to sell and at what price to break even and make your enterprise profitable. This is information you want well in hand before you take the risk and hold that grand opening.
A business plan describes the business, its product or service, marketing strategy, operating expenses, expected income and a projection for future growth. A business plan may average 10 pages. Your idea and summary of the business will be one page. This one page snapshot is the map that gets your started on your path to success. The details described in the plan answer the questions about tangibles such as product/service, price and the cost of doing business.
Aspiring entrepreneurs can meet with a SCORE counselor for advice on business planning. Service Corps of Retired Executives, or SCORE, was formed in 1964 as a nonprofit association dedicated to entrepreneur education and the formation growth and success of small businesses. Contact the Savannah chapter at 912-652-4335. For information go to www.scoresav.org