If you've got a great business idea, you're probably ready to get started on the path to being a successful business owner. At this stage of the game, hearing that the best idea is to slow down and do some planning may sound crazy, but actually, it may be the smartest thing you can do to make sure your business survives. Less than 25% of new businesses survive the first 12 months. It is obvious why. Most business owners jump in head first with what may be a great new business idea they are passionate about, but they do not have any real action plan as to how they plan to market their business.
Marketing Plan
Prior to opening your doors or advertising your services, you need to make sure you have a strong plan in place on how you're going to get the word out about your operations. If this includes marketing that is costly, you need to make sure you have money saved in advance of opening your business to have items printed or ordered. All marketing should be ready to go prior to the opening of your business.
Expenses and Budgeting
Many businesses that start without a business plan have a serious problem with managing expenses. Because there are so many costs to opening your doors, you need to have a detailed budget prior to beginning business. Many people will be quick to offer you advertising opportunities, products to purchase, and other things that will take money off your bottom line. To know what you can afford, you need to have a budget that you stick to and identify the costs you plan to incorporate into your business. Many new and inexperienced business owners make the mistake of going into business without another stream of income. If you have a comfortable lifestyle with a multi-income household this may not be a problem. But on the other hand, if you are the breadwinner for your family, you will need to be sure you've saved plenty in advance prior to leaving your current full time position to start your own business. Budgeting and making a detailed plan for your expenses not only keeps you from making impulsive purchasing decisions, but will also make sure you've thought the financial part through before opening your business.
Goals and Concept
Overall, having a business plan is key because if you get off track and things are not going in the right direction, you can go back to your plan to check your goals. If you do a business plan in advance, it should include your goals, mission statement, and the core values of your company. If you struggle at any point, it will be simple to refer back to your business plan to remember why you wanted to start this business in the first place. This practice can help you simplify your focus and remember what was important to you from day 1 that encouraged you to start your company.
