Everyone has dreamed at some point in their lives about starting a business. Many feel that it is beyond their reach, and will continue to leave their dream as just that....a dream. However, for those that want to
take the next step, and are serious about succeeding at their business, you must start with a business plan.
These 7 steps to writing a business plan are what can get you started. This is not the comprehensive business plan you will need if you go in search of financing or business partners. For a business plan such as that you may want to consider hiring a professional or taking some classes on business plan writing.
This quick and easy version of business plan writing will be a good start to get you thinking, and if you choose to hire someone to write a comprehensive plan, you will need to do these steps for him or her anyway. Each step must be done in order, as you will need the answers to one step before going on to the next.
So, grab a notebook, and get started! All you need is an hour of time to take the first step in making your dream a reality.
BUSINESS PLAN STEP 1:
Determine the purpose of your business. Identify it on paper and go into as much detail as you can at this point. For instance, are you providing a service to the community? Perhaps you are selling a product. Write down what you want the focus to be.
BUSINESS PLAN STEP 2:
Who is your target consumer? Will it be men or women? Old or young? Individuals or businesses and corporations? Local consumers or long distance consumers? All of these are very important to know before proceeding to the next step.
BUSINESS PLAN STEP 3:
Decide how to market to your target consumer. Will you use the Internet? Newspapers? Maybe you will make packets to deliver to local businesses and corporations in an effort to gain their business.
You will need a clear understanding at this step of the purpose of your business and your target consumer. For instance, you will most likely not need to place a newspaper ad if you are providing corporate services, and you will probably not need a business packet if you are advertising to the general public.
BUSINESS PLAN STEP 4:
Where will your business be based out of? Will you work from home, or do you need a location? Obviously if you are running a store, you will need a store front. Location is key, so start researching now how much
rents are in your desired location. You would want a high traffic, or easily accessible area for a store.
Perhaps you are just selling stuff online, in which case you don't need a store, but either enough space in your home if you have inventory or a storage unit.
If you are a service provider, you may or may not need a location outside of your home. These are all questions you need to answer to define your business structure.
BUSINESS PLAN STEP 5:
What kind of tangible items will you need to get your business started? Do you need inventory? You will most likely need an assortment of office supplies no matter what your business. Items such as a computer, printer, fax machine are all typical office needs in todays society.
Do you need equipment? This is a good time to research what you may need in the way of equipment for your business. Make a detailed list so you can easily research costs for each.
BUSINESS PLAN STEP 6:
Create a chart to calculate costs. This is the step you perform all the research and write down the costs of everything in the above steps. Don't just guess, but do some actual research. This will include making telephone calls and doing internet searches as well. Creating a list will give you a good idea of what finances you will require in order to get started. Once you have that number calculated, add an additional 10% for incidentals.
BUSINESS PLAN STEP 7:
Draft your "Action Step" list. At this step, while looking over the first 6 steps, create your "Action Step" list, or your "To Do" list. This will and should be extensive. There are many things to do when starting a business.
Once you have completed all seven steps, you are ready to move on. You may want to consider hiring a professional business plan writer, or at the very least, you may want to take a class in business plan writing.
Other things to consider are consulting an attorney to answer your legal questions. Do you need a license? Should you incorporate?
You should also visit an accountant who specializes in small businesses. He or she can give you great financial advice before you get started so you are aware of all the financial aspects and repurcusions of starting a business.
In any event, it is possible to start your own business. Just be sure to do it right, do your research and stay motivated!
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