Starting a Business - What is a Business Plan?

So you've decided to start your own business -cost and workload, but also the profits and the
congratulations! It's a huge leap from letting someonebusiness decisions? Perhaps the decision will be made
else take care of taxes, accounting, payroll, inventory,to incorporate, with its financial safeguards but more
and/or a myriad of other activities necessary to run acomplex and costly structure? At this stage, legal
business. However, running your own business has itsadvice is recommended, if only so that you fully
advantages, too. You get to be your own boss, setunderstand the advantages and disadvantages of
your own hours and days to work, and are responsibleyour chosen structuring plan. Many lawyers will provide
for your own success. It can be a great way to freea free or reduced-rate primary consultation, though
yourself from the tedium of 9-5 and work at doingoften not more than an hour. When the structure is
what you love, but you have to begin by asking a fewfinalized, a name for the business should be decided
questions:upon, if not already having been done so in advance. It
1. Are you doing what you love, or just doing somethingshould be easy to remember, avoid initials and single
you're good at? A desire to get away from theletters (B & L & R, Inc. will be difficult to remember for
regular working world can be a good motivation tocustomers) and try to say something about the
work for yourself, but you have to be excited to getbusiness (Bob's House of Hobbies is easier to
up in the morning to do what it is you have chosen toremember and spell).
do for a living.Next, a business plan is a vital step in laying out all
2. What is it you are planning to do? What niche is itthese topics and proposals in a standardized format. A
going to fill? Is there a need for what you can provide?good business plan serves as a formal statement of
Will the market bear another entry?the new company's goals, financing, structure and legal
3. What technical skills or talents do you have? Justconsiderations. It acts as a "resume" to prospective
being able to do something may not be marketableinvestors and is the primary documentation they will
enough to convince customers or financiers that youuse to evaluate whether or not your business will be
are a good financial investment.worth investing into. It also provides the proprietor(s)
4. Who are your competitors in your chosenwith a chance to see the workings of the new
profession and how are you going to do it better?business in black and white. A basic business plan
Why should customers come to you? What do youshould at the least contain a balance sheet, income
have to offer that no one else does?statement and statement of cash flow, as well as a
Once you are satisfied with the answers to theseproposed financial budget for the first year, or as long
questions, it is time for the decision of what kind ofa period as necessary if a year is impractical.
business structure you will use. Will you be a soleSo with these quick tips, plan for success, and good
proprietor, responsible for every facet and theluck in your chosen endeavor!
penultimate authority as to how to run the business?© 2006, Wholesale Pages UK. All rights reserved.
Will you enter in with a partner, the better to share the