Starting A Business What Is A Business Plan

Starting a​ Business – What is​ a​ Business Plan?
So you've decided to​ start your own business - congratulations! It's a​ huge leap from letting someone else take care of​ taxes,​ accounting,​ payroll,​ inventory,​ and/or a​ myriad of​ other activities necessary to​ run a​ business .​
However,​ running your own business has its advantages,​ too .​
You get to​ be your own boss,​ set your own hours and days to​ work,​ and are responsible for your own success .​
It can be a​ great way to​ free yourself from the​ tedium of​ 9-5 and work at​ doing what you love,​ but you have to​ begin by asking a​ few questions:

1 .​
Are you doing what you love,​ or​ just doing something you’re good at? a​ desire to​ get away from the​ regular working world can be a​ good motivation to​ work for yourself,​ but you have to​ be excited to​ get up in​ the​ morning to​ do what it​ is​ you have chosen to​ do for a​ living.
2 .​
What is​ it​ you are planning to​ do? What niche is​ it​ going to​ fill? is​ there a​ need for what you can provide? Will the​ market bear another entry?
3 .​
What technical skills or​ talents do you have? Just being able to​ do something may not be marketable enough to​ convince customers or​ financiers that you are a​ good financial investment.
4 .​
Who are your competitors in​ your chosen profession and how are you going to​ do it​ better? Why should customers come to​ you? What do you have to​ offer that no one else does?

Once you are satisfied with the​ answers to​ these questions,​ it​ is​ time for the​ decision of​ what kind of​ business structure you will use .​
Will you be a​ sole proprietor,​ responsible for every facet and the​ penultimate authority as​ to​ how to​ run the​ business? Will you enter in​ with a​ partner,​ the​ better to​ share the​ cost and workload,​ but also the​ profits and the​ business decisions? Perhaps the​ decision will be made to​ incorporate,​ with its financial safeguards but more complex and costly structure? At this stage,​ legal advice is​ recommended,​ if​ only so that you fully understand the​ advantages and disadvantages of​ your chosen structuring plan .​
Many lawyers will provide a​ free or​ reduced-rate primary consultation,​ though often not more than an​ hour .​
When the​ structure is​ finalized,​ a​ name for the​ business should be decided upon,​ if​ not already having been done so in​ advance .​
It should be easy to​ remember,​ avoid initials and single letters (B & L & R,​ Inc .​
will be difficult to​ remember for customers) and try to​ say something about the​ business (Bob’s House of​ Hobbies is​ easier to​ remember and spell).

Next,​ a​ business plan is​ a​ vital step in​ laying out all these topics and proposals in​ a​ standardized format .​
a​ good business plan serves as​ a​ formal statement of​ the​ new company’s goals,​ financing,​ structure and legal considerations .​
It acts as​ a​ resume to​ prospective investors and is​ the​ primary documentation they will use to​ evaluate whether or​ not your business will be worth investing into .​
It also provides the​ proprietor(s) with a​ chance to​ see the​ workings of​ the​ new business in​ black and white .​
a​ basic business plan should at​ the​ least contain a​ balance sheet,​ income statement and statement of​ cash flow,​ as​ well as​ a​ proposed financial budget for the​ first year,​ or​ as​ long a​ period as​ necessary if​ a​ year is​ impractical.

So with these quick tips,​ plan for success,​ and good luck in​ your chosen endeavor!
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All rights reserved.

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