Core Business Solutions Advice

As I covered in my blog of May 16th there are seven major and typical reasons businesses fail. So many businesses are started with out a logical written business plan and I believe it can be the biggest contributing factor to the failure of a business.

Why?

It's about a Lack of Planning.
So what's going on here and what is this business plan stuff you keep hearing about?

Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning -- and hard work -- success would not have followed. The same could be said of most business successes.

It is critical for all businesses to have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

In most cases the components of a business plan should include:

1-Description of the business, vision, goals, and keys to success; What is the business about? Why does the business exist? What need or niche will it fill? Has this need been quantified and verified or is it just an assumption? What do you want the business to look like in 1 month, 3 months, 6 months, 1 year and in 2 years and even 5 years. What is your vision? What is your company's mission?

2-Work force needs; Will you need employees? Why? To do what? Where and how will you find my workforce? How will they be paid and how much will you pay them? Why? How will you manage them?

3-Potential problems and solutions; The dreaded SWOT analysis- What are your Strengths as a business person? What are your Weaknesses? What Opportunities are there available to help your business to be successful? Are there any Threats to your business or anything that could stop you from being successful? (i.e. health issues?) If so, how will you deal with those issues if they occur? Do you have or need a Plan B?

4-Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecasts; What are your margins? How much profit will you expect to make with each sale? What are the start up expenses and how will they be funded? Short Term or Long Term loans? Equity Financing? Angel Investors? Savings? Property Liquidation? How much do you need and why and for what?

5-Analysis of competition; How will you compete? How will the business differentiate itself from the competition? What is your edge or your niche?

6-Marketing, advertising and promotional activities; How and where will you find customers or clients? How will they find you? Will you have a website? [Which for most businesses today is crucial] Here is where you develop a complete marketing plan with sales goals and specific sales plans. How will you sell your product or service and who will sell it? Do you have the well developed sales skills required?

7-Budgeting and managing company growth; If your company grows and does well how will you manage your funds? Will some be reinvested into the business? If so, how much and into what areas of the business and why?

In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.

Writing out each of these questions in these components listed and answering every one of them with brutal honesty will help you discover if your proposition is even feasible.

Here at Core Business Solutions we have written many business plans and it's very hard work; to think about all these concepts and ideas and to work out all the potential problems and to research all the topics. Writing a business plan is a process, not an event. It should be undertaken over period of weeks not days.

A business plan should be a living document that is reviewed and updated regularly. The Core Business Solutions business plan is reviewed each fiscal quarter as it's a way to measure how we are doing? Am we meeting our goals and objectives. If not, why not? Now we can find the problem and devise a fix. If we're meeting our goals, now we know that as well. Yeah! Party Time!

If you need help writing your business plan, be sure you find someone who can be objective and most importantly has business plan writing experience and a strong business acumen.

Next time, I'll take up the subject of: Starting A Business For The Wrong Reasons. This is another of the top 7 major reason businesses fail.

Until next time.....All The Best,

Walt Morey
Core Business Solutions www.corebizsolution.com