Are you tired of your current job? Better still, are you tired moving around from job to
Do you want to start a business of your own and become the boss? How would you feel being in charge of your life and time? But before starting a business or even thinking of starting one. You need to examine yourself by asking yourself some certain questions, because you don’t want to venture into something you will regret later.
Related post: Setting Up a Standard Business Model For Interminable Income Generation
So you need to be very sure of your decision about which business fit your lifestyle.
Nobody likes giving themselves hard time. Everybody loves the title “Entrepreneur” or “Business-Owner” but many fail to go into the business for the right reasons. Now, ask yourself these questions to make sure you’re thinking about the right key business decisions.
1. Why am I starting a Business?
Yes, why do you want to start a business? Is it because you just want to own a business
like everyone does or because all your friends now have a business of their own.
You are to have a good motive about starting a business. Will you be better off as an
investor or as an entrepreneur?
Think about it and give yourself a candid answer to question 1.
2. What kind of Business do I want?
Do you want to venture into production, selling of products or delivery services? You are either selling products or selling a service.
What do you prefer?
3. Who is my ideal Customer?
The customer you intend selling to determine the type of business you want to build. So
give an answer to that question.
4. How much money do I need to get started?
Money has always been a factor of production. You must have been taught in economic class (if you went to school).
You have to first determine how much money you will need for the necessary requirement to launch your business.
Do you know how much you will spend for transportation? How much to order for the
goods that you want to sell?
Do your business involve paying ticket(for Nigerians)? So how much do you need to get started?
5. Where will my Business be located?
Have you gotten an ideal location for your business? Does your business even need a
Can’t it be run from your home?
You have to position your office in the area where your customers are located. This help you get a first call advantage when your products or services is needed.
After going through the above process, the next thing that should be done without error is crafting a suitable business plan for your new business. No business can thrive successfully without a standard business plan highlighting the set goals and objective of the desired startup.
For me this prospect encapsulates perfectly the troubles of not having an
over-arching goal and plan for your business.Without a comprehensive business
plan for your proposed business startup, a business is in effect a failure, as
far as am concern.
Consequently, day-to-day activities are likely to be disorganized and reactive, which is why perfect businesses implementing a well thought out business plan is essential for optimal success.
The following represents a list of my top five reasons why a business needs a business plan to succeed
1. To map the future of the business
Practically, a good business plan is not just necessary to secure financial support at the start-up phase, but is a vital aid to help you manage your business more efficiently. By
committing your judgment to paper, you can understand your business better and
also chart specific courses of action that need to be taken to perk up your
A plan can comprehensively offer streams of alternative future scenarios and set explicit objectives and goals along with the resources required to achieve these goals.
By understanding the business you are about to venture into and the market a little better and seemingly planning how best to operate within this environment, you will be technically placed to guarantee your long-term success.
2. To maintain growth and secure adequate financial support
Most businesses face potential investment decisions during the course of their lifecycle. frequently, these hypothetical privileges might not receive the funding it deserves by free cash flows unaided, and the business must seek external funding.
Nevertheless, in spite of the fact that the market for funding is extremely aggressive, all potential lenders will necessary request access to the company’s current Income Statements/Profit and Loss Statements, along with an up-to-date business plan. In essence the former helps investors appreciate the past, whereas the business plan helps give them
a window on the future.
Note that when seeking investment in your business, it is imperative to evidently illustrate the opportunity, as investors will want to know:
· Why they would be better off investing in your business, rather
than leaving money i a bank account or investing in another business?
· Why people will part with their cash to buy from your business?
A well-written business plan can help you convey these points to prospective investors, helping them feel confident in you and in the attention to detail with which you have
considered future scenarios.
The most fundamental and lucrative component for them will be cogent evidence of the company’s future ability to generate adequate cash flows to meet money owing obligations, while enabling the business to function successfully.
3. To develop and communicate a course of action
The written business plan can allocate milestones to specific individuals and ultimately help management to monitor progress. Once written, a business plan can be distributed rapidly and will also at the appointed time further questions and receive appropriate feedback by the readers helping to ensure a more mutual plan is produced.
A comprehensive business plan aids a company review future opportunities and entrust to a particular course of action. By committing the plan to paper, all other options are
effectively marginalized and the company is aligned to focus on key activities.
4. To help manage cash flow
The significance of cash flow cannot be over emphasized. Cash flow management then becomes more fundamental when businesses follow investment opportunities where there are significant cash out flows, in advance of the cash flows coming in. These opportunities
need to be assessed against any seasonal variations in the business and the
timing of the flows. If you are a “cash-only” business, you can bank the income
immediately; however, if you sell on credit, you receive the cash in the future
and hence may need to pay some of your own expenses before that income hits
This will put a further strain on the company’s solvency and hence a well structured business plan will help you manage funding requirements in advance.
Cautious administration of cash flow is an essential requirement for all businesses to thrive efficaciously.
The reason is quite simple–many businesses fail, not because they are unprofitable, but because they ultimately become bankrupt. While the break-even point–where total revenue equals total costs–is a highly important figure for start-ups, once a business is up and running profitably, it becomes less important.
5. To support a strategic exit
In conclusion, it will get to a certain stage where the individual investors or stakeholders of the business will decide it is time to exit. If accurate exit pathway has been drawn, the probable exit strategy in advance can present the day decisions. The primary objective is
to clear up the investment, so the owner/current investors have the option of
cashing out when they want.
Common exit strategies include;
· Initial Public Offering of stock (IPO’s)
· Management buy-outs
· Potential amalgamation/merger
· Purchase by major competitors
· Family sequence
Normally, based on the circumstance, Investment decisions can be taken with one eye on the future by means of a carefully planned business plan. For instance, if the most good-looking exit direction appeared to be selling to a competitor, present day management
and investment decisions could focus on activities that would increase the company’s attractiveness to that competitor.
Given that valuing firms is disreputably complicated and skewed, a well-written business plan will obviously draw attention to the opportunity for the incoming financiers, the value of it and increase the likelihood of a successful exit by the current owner.
- Are you tired of writing Business plans and proposals that don’t go anywhere?
- Have you encountered massive huddles due to lack of professionalism in writing compelling and efficacious business plan?
- Do you plan on submitting your next business plan to grab the attention of your potential financier? Making him begging and pleading for your plan?
- Do you have what it takes to write a catchy and intimidating business plan that will make your potential financier goes crazy about your research business?
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