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Business Basics

Here are my thoughts on beginning any business.   Please offer any comments you might have.

I believe the single most important step to starting up any business is the development of a sound Business Plan.    Monitoring the health of a business is possible with a sound business plan.  Business plans are like a road map and needs to be followed.  It has been said, "if you don't know where you are going, any road will take you there".  Without a clear, concise, and structured plan, the business eventually runs out of steam, money, whatever the intent might have been, etc.  Maintaining and refining the business plan is an essential and ongoing aspect for the new start and for those already in operation.

I see a solid business plan being more important than having a wheel barrel full of money - sooner or later the money will run out.  Failure to achieve even a modest return on investment during the early development stages of a business will eventually force the business out of business.  Without a pool of new operating funds a business cannot survive long.  This holds true whether the pool of money initially comes from revenue, personal funds, the deep pockets of investors and even the banks.   A business plan will help define the ups and downs of the business. 

I do not envision investors, banks, family, throwing more money into a failing business.  Most investors would not even consider loaning any monies initially without a thoroughly researched and structured business plan in the first place.  A good business plan will also define for the investor the vision, structure and the road the business will follow from the start.

Here are the areas that I feel require thorough research and are essential elements in all good business plans: 

 - Niche Markets
 - Marketing your business
 - Location of the business
 - Funding the business
 - Partners that offer value
 - Length of time before a profit is realized

(Note to Remember - even if you develop a good business plan, the plan must be fully implemented in order for it to work (good words on paper are not enough).  Finally, tweaking the plan may be necessary from time to time).

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