AVOIDING THE DARK SIDE OF SELF-EMPLOYMENT. By Dr. Larry B. Swain SD Vocational Rehabilitation Conference October 26-27, 2011 Sioux Falls, South Dakota. WHY DO A BUSINESS PLAN?. IT’S A LOT OF WORK IT TAKES TOO MUCH TIME I DON’T KNOW HOW TO DO IT IT MAKES ME SIT DOWN AND THINK
Dr. Larry B. Swain
SD Vocational Rehabilitation Conference
October 26-27, 2011
Sioux Falls, South Dakota
IT’S A LOT OF WORK
IT TAKES TOO MUCH TIME
I DON’T KNOW HOW TO DO IT
IT MAKES ME SIT DOWN AND THINK
I DON’T KNOW HOW TO WRITE
I DON’T LIKE IT!!
Who needs to write a 50 page plan when you don’t need it.Why do excel spreadsheets when Twitter can launch a website, command a billion dollar from top venture capitalists and figure out how it’s going to make money after it gets funded?
In 2007 Babson College did a survey of its graduates who started a business.They found no statistical difference between those who had a business plan and those who did not.The Babson researchers concluded that the only companies needed a business plan are those seeking to raise external money for start-up.
If you are starting a home based business that requires no employees, no overhead, no inventory, little or no capital outlay, then you might not need to do a business plan.
If you are starting a retail store, restaurant, fashion label, real estate venture or e-commerce that requires people and capital to help you build it, then you need to do a business plan. Even if your financing is within the family.
1. DESCRIBE WHAT BUSINESS YOU REALLY IN.
2. WHAT GOODS OR SERVICES WILL YOU PROVIDE?
3. WHERE AND WHO IS MY MARKET? What is the geographic area?
4. WHY WILL CUSTOMERS BUY?
5. WHAT IS THE MARKET POTENTIAL IN MY TRADE TERRITORY?
6. WHO IS MY COMPETITION? WHAT ARE THEY GOOD AT AND WHAT AM I GOOD AT?
7. WHAT FORM AND PACKAGING FOR MY PRODUCTS OR SERVICES?
8. MERCHANDISING AND MARKETING PLANS, BROCHURES, PROMOTIONS, ETC.
9. LONG TERM AND SHORT TERM GOALS FOR THE BUSINESS.
10. FINANCIAL DATA SUCH AS PRO FORMA CASH FLOW, PROFIT/LOSS STATEMENT, AND BALANCE SHEETS
11. ORGANIZATIONAL CHART (who is going to do what?)
12. EXIT OR HARVEST PLAN FOR THE BUSINESS.
Finally, this plan should be reviewed regularly. It should be a living and breathing part of your business.
If this plan is worth doing in the first place, it is worth becoming successful.
Change any part of it when you have better information.
“WHETHER YOU THINK YOU CAN, OR WHETHER YOUTHINK YOU CAN’T - - - EITHER WAY,--- YOU ARE RIGHT!!”
I HOPE YOU THINK YOU CAN!