Statistics about small business aren’t as grim as they used to be, but they aren’t very promising either. Even with the improved numbers, the majority of businesses won’t celebrate their 10-year anniversaries. If you are on the verge of launching something, of turning your precious idea into an actual business, and the negative statistics pop up, you may consider giving up altogether. We are here to make sure that doesn’t happen.
There is nothing you can do to completely avoid failure, but there are certain steps you can take to make sure the risks are minimised. If you dive into something unprepared, you might just make it, but your chances will be very slim. Therefore, a key to a successful business is preparation and nothing beats a good business plan.
If you are trying to turn your weekend hours in the garage into a profitable venture, start by putting it all on the paper and investing some serious thought into it. Although it will take a significant amount of time, a well-written business plan is going to save you a lot of trouble in the future, as well as a lot of money and a couple of very serious headaches. So, let’s dive in.
Go Back to School and Do Your Homework
There are many different types of business plans and a lot of different methods and forms. Before you go down that rabbit hole, start by not writing at all. Don’t even look at the various options and advice. Start by removing yourself from your typical surroundings, find a peaceful and quiet place and just think. Envision your future business and try to answer a couple of questions.
What is important to you when it comes to your business? What do you want day-to-day operations to look like? What kind of boss would you like to be? What type of people would you like to hire? What will your products and services look like?
Spend hours, days or even weeks thinking about all of this. Some owners say they spent years thinking about all of the ideas, mixing them up, improving, until they finally had one perfect idea as a result. Once you do that, start writing.
Consult Experts and Be as Precise as You Can
If you’ve never run a business, and chances are you haven’t, you won’t really know everything that is your right and your obligation. For instance: how many square feet does each employee need to have? Do you need to cover the outlets if you have underage personnel? What are the safety regulations for disposing of dangerous waste? What is the necessary documentation for hiring international workers?
So many questions… But not all of them are equally important. Amongst all of those questions, there is one you can’t avoid it and you need to have in mind – taxes. No matter what kind of business you running, there is no avoiding it. Unfortunately, if you haven’t had any previous experience you might find yourself in a world of trouble. The best way to avoid it is to consult a tax expert, someone with a vast experience in the area and a lot of useful advice.
Start With What You Are Going to Sell
There are so many different parts of a business plan and so many routes you could take. Different approaches will yield different results, all of them completely valid. Ultimatelyyou will have the same result – a complete, and detailed business plan. Nevertheless, where should you begin? Well, we have an idea.
Start with your product or service that you wish to present to the world. What is the core idea of your business and what problem does it solve? Is it an app to learn more about recycling? Is it a head accessory that can be reused for a different purpose?
Do you want to start a language school that uses a completely different methodology? No matter what your idea is, start with that and then work your way up. Generating income is the most important thing for a new business, so making sure that your idea is, in fact, profitable, should be the number one thing on your list.
Another important topic is to never take anything at face value and that you should test every result and decision that you come up with. Making sure that your final idea will be well sold, liked by consumers and successfully launched doesn’t come overnight.
Start building some focus groups, hire QAs and make sure to include all of that in your business plan. If you don’t plan it, it probably won’t happen, because you won’t have the resources to achieve it.