Minding Your Business with a Business Plan

“By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be." Mark Victor Hansen could not have spoken truer words. The idea of writing down thoughts, goals, and dreams, is a transcendental one. In fact this very practice has materialized to a standard requirement in the world of business, formally known as a business plan. It is the vital blueprint for any startup and entrepreneurs are recognizing just how drastic business can change positively, with written foundations. So why are business plans so important?

Vision

If you were traveling somewhere you’ve never been before, would you go without a map? Probably not, so why would you embark on a business venture, where the risk is far greater, without having a blueprint? Your business plan functions as a map—your big picture. Before you start any business your only tool is your idea. As you begin to think about it more and more, ideas develop and a plan emerges. You start to consider factors like your target audience, market research, funding, staff/ employees, business registration, and the list goes on, but they still just classify as ideas in your head.

Documenting this information is what keeps your vision alive. It is your way of stepping outside of yourself to allow your vision to materialize. Further, organizing your ideas by formulating them in a business plan helps you build effectively and remove information that may be detrimental to your business as a whole. This inherent editing and buffering allows you to keep your vision in mind; the more you work on the plan, the realer your entrepreneurship becomes. Simply put, creating your business plan takes you from a dreamer to a doer.

Accountability

Your ability to transition from the phase of a dreamer to a doer often determines how serious you are about your startup. Creating a business plan requires work and research and this investigative nature of the process keeps you accountable in more ways than one. Firstly, your business plan makes you accountable for your own actions. When you make a plan and write it down you are more likely to follow through on that plan than if you had simply stored it away in your mind. Your business plan is your personal correctional officer, ensuring that you are working towards the fulfillment of your startup. 

Secondly, a business plan keeps you accountable to your potential investors, sponsors, and banks (when you apply for a business loan).  At some point you will realize that your startup is less about you and more about what service you are capable of bringing to the table. Investors and those alike, want to ensure that you are worth the investment: a) is there a market for your idea b) is it lucrative, and c) how big is the return on investment. Additionally, they want to be able to trust you and your abilities. In most cases, the primary source of endorsement is a well-orchestrated and thought-out business plan.

To Answer the Question: Should you really be starting a business?

A common mistake entrepreneurs make is underestimating how much work actually goes into starting and running a business. A business plan is one of the primary tools to weed out the weak from the strong, the able from the disabled, and the determined from the desolate. As mentioned above, your business plan is where the evolution of your idea takes place. As you comb through each category of the plan and consider your place in the entrepreneurial world, things can become overwhelming. It is at this point that you must reason with yourself. Consider whether this is a journey you should embark on now or, alternatively, if you would benefit by waiting a while. 

You might also reflect on whether you should partner with someone or work individually. How much time would you have to invest daily, especially if you’re pursuing a startup while working a full time job? At the very least, your business plan is your platform for evaluation; don’t take it lightly.

We’ve shared some of the most fundamental reasons for using a business plan for your startup and we encourage you to consider them before your next venture.  If you’ve been working on a business plan tell us why it’s an important starting point for you!

Creating the Perfect Business Partnership

Although the original idea for your business might be all yours that doesn’t guarantee you won’t need a partner to get that business running and keep it afloat. A solid business partnership can actually increase the likelihood that your company will find success. That’s because you’re sharing the responsibilities and expanding your networking potential.

What makes a productive business partnership? Consider the following factors:

 

Set Your Goals

You should already have a business plan with a strong vision and measurable goals. When you go looking for a business partner you want someone who can share in your vision. You need to be honest about your own limitations. Are there some skill sets you need to develop for yourself? What can you learn from a business partner? Suppose you were opening a restaurant and had terrific chef but they didn’t know anything about desserts. Wouldn’t it make sense to hire a pastry chef? You want to find a business partner that can build upon your talents. They also have to be enthusiastic about your vision. You’re not looking for a “gun for hire” but a genuine partner.

Look Beyond Your Circle

As you begin your search for a great business partner, you’ll want to go beyond your immediate social circle. Yes, you might have a friend or family member who could fit the bill but don’t stop your search there. Go to where you might find the most qualified partner. There could be trade shows, industry events or conferences, where you will find like-minded individuals who would prove to be an asset to your company. The last thing you want to do is find a business partner who doesn’t have any experience in your industry.

Manage Expectations

After you’ve narrowed down your candidate list you’ll want to carefully detail the responsibilities for your new partner. Depending on the circumstances, a business partner could become an equal owner in the company because of the investments, skills or ideas that they are bringing to the table.

However, that doesn’t mean they can automatically dictate how things should be run. That should come from you as the controlling owner. Of course, you’re hiring a partner because you want the support so be open to any ideas they might have about management, marketing and production. If you’re both clear from the outset about what you expect from each other than there shouldn’t be any surprises down the road.

Make It Legal

Once agreed upon, all of those responsibilities should be put into the form of a legal contract. This contract should spell out things like compensation and termination of the partnership. Essentially you should cover all the bases. A handshake is a noble way to do business but won’t matter in a court of law if something goes wrong. As with every other aspect of your business, get it in writing and get it signed.

Your Entrepreneurial Dream - Don't Let Anyone Steal It

From the very moment you had your first job, you’ve probably began the dream most common among workers: how to be your own boss?

Actually, that’s the 2^nd most common dream; the first would be to win a jackpot lottery prize and retire!

But the dream of being your own boss isn’t as farfetched as you would think. If you have an entrepreneurial dream then what’s holding you back from taking it to the next level? Maybe you once had a great idea for a business that you see developed later on by a complete stranger into a successful entity.

That only means your ideas are worth pursuing. Don’t let another entrepreneurial dream slip by.

Consider these insightful tips to help make your dream of being your own boss come true.

1.      Define Your Goal and Vision

Saying you want to be your own boss is a good motivating factor but how are you going to get there? You need to define your goal in terms of a business plan. Suppose the company you’re working for now is an area you excel at. Could you start your own version of that company? That’s usually how many small businesses begin as off-shoots from former employers in the same field.

2.      Keep It Real

The key is to pick a specific goal that you can follow. To say, “I want to make a million dollars profit in my first year,” is not realistic no matter what the business. There is nothing wrong with having lofty ambitions but you have to be practical about the direction your want to follow on your entrepreneurial journey. You might want to own your own restaurant but perhaps it makes better sense to start a small diner and build a clientele. Less overhead and more room for “learning curves.”

3.      Learn the Ropes

If you’re planning to start a business that you’re already familiar with then you should have a solid foundation of how that business works. However, that doesn’t mean you know everything about running that business. You might be adept at sales but how are you at bookkeeping or payroll or property leases? Those are all areas you’ll have to become familiar with as your business expands. To accomplish that it might make sense to learn the ropes either through college courses or working with a mentor.

4.      Take the Leap

Sooner or later all of your dreaming has got to come down to earth, so to speak. This means you have to actually begin to implement your plans. If you have a well thought out business plan then you’ll be using that as a kind of road map for this journey. There will be bumps along the way but at least you’ll be headed in the right direction.

Starting your business means you’ll have to be decisive in your business decisions. That’s what being a boss is all about. No more sitting on the sidelines; it’s time to get in the game!

Why Startups Need a Strong Vision

 Thanks to the GPS we never have to get lost again. All we need to do is plug an address into our phone or car’s navigation system and we can make it to our destination easily. We even get alternate routes to avoid heavy traffic!

Can you imagine going to some new destination in an unfamiliar part of town without directions? Now try to imagine a starting your business without any direction. You wouldn’t know what goals to aim for, when you reach your target or where you see your business in the coming years.

That’s not a good way to start any endeavour.

However, if you can create a well thought out vision for your business, you’ll be able to build upon and execute that vision towards success. Without it, you could quickly get lost.

Dream Big

A startup’s vision is your chance to dream big. The single store you’re opening today could become a major franchise down the road.

That is part of your vision. Will you know how to achieve that goal?

You will when you set forth a specific set of benchmarks to reach in the coming months and years. Your vision is as much about the future as it is about the day-to-day operation. Don’t hesitate to dream big.

Try this simple exercise: In five years, where do you see your company?

The answer to that question is what your vision is all about. Do you think you could achieve that goal without first understanding what it is?

Make the Commitment

The vision for your company isn’t just about those lofty ideas and grand schemes. There has to be a practical aspect to this as well. Your vision needs to have elements of a concrete plan included.

You don’t have to get into the nitty-gritty details of your operation, but you should know the answers to these questions:

·         When is it the right time to rent commercial space?

·         How do you measure the success of a marketing campaign?

·         What is your profit margin for each of your products or services?

·         How many employees do you need to hire and how much are they worth?

Those are tangible aspects of your vision that can be put into action once you make the commitment to do so. Just because you want to bake a cake for the very first time doesn’t mean you can unless you have a recipe to follow.  

Put It in Writing

When you craft a vision for your business you should always put it in writing.

This makes it real.

The best approach to creating a vision for your business is to imagine handing off what you’ve written to a total stranger. Could they follow your plan without asking any questions? That’s how thorough your vision should be.

It will give you the best chance at starting on the right foot. 

How to Choose a Law Firm for Your Small Business

As the owner of a new small business you’ll be taking on a lot of responsibilities. In your role as boss, it will be your final decisions that impact your staff and the direction you want the business to take. While it might feel at times as if you’ve taken the weight of the world on your shoulders, you can (and should) add to your team with a qualified attorney. Developing a working relationship with an attorney who understands your business will be vital to your success. The following are some helpful hints to help you pick the right law firm.

1)      Start With a Recommendation

When you open up your business you’ll be entering into a community of your peers - other business owners who have been through your situation. These fellow owners can are great resources for solving any challenges that you might face. This network can answer any business related questions that you might have. Start by asking about the law firm they use. Getting recommendations from business owners is the best way to start researching the law firm that will be perfect for your needs. Keep in mind that just because someone recommends a law firm doesn’t mean you have to hire that firm. You’re just asking for names.

2)      Write Out Your Vision

You might have created some sort of business plan for your investors, but your vision of where you want your business to go is something less formal. This is a document that you can use to strategize with an attorney. This vision can help you choose the right law firm based on that firm’s experience. For instance, you might want to franchise your business so you should be looking for a lawyer with expertise in that field. The same holds true for expanding your business globally. Does the law firm have offices in other cities or countries?

3)      Research

Just as your business will need a website, every prospective law firm you’re looking into will have their own internet presence as well. This will be your first impression of the law firm and can tell you a lot about how they handle their business. Once you enter into discussions about retaining the services of a law firm you’ll be given the opportunity to follow-up with their references. Make those calls.

4)      Factor In the Costs

Billing practices vary from one lawyer to another. Many new business owners have gotten quite a shock from their first legal bill when they are charged for a quick phone call or email response. Remember that lawyers make their living through billable hours. When you develop a strong relationship with a law firm the “nit-picking” of hours charged might not become such a big issue. However, you should be aware of all the fees up front and what a lawyer expects to bill you for. Additionally, all these fees should be in writing.

Even if you are a freelancer or a home business, there will be a situation where you will need to use the services of a corporate lawyer. This could range from needing legal advice, or it could be to draft up contracts and agreements. Either way, it's always a good idea to retain the services of a corporate lawyer in case any unexpected situations come up.

What to look for in a business partnership

Just like a marriage, a business partnership is a joining of two people working towards a common goal, sharing the same values and vision before it can move forward. These partnerships however, can take a variety of forms, ranging from joint ventures to long term commitments. Here are some tips on what makes a strong business partnership:

Sharing a common vision: It’s extremely important to define where you envision your business to be. Ask yourself questions such as; what type of clients do you want and what kind of service/product you’d like to offer? If your vision of the company is different than that of your partner, you will encounter problems down the road. To avoid this, sit down with your partners and discuss where you see the business heading. Ask yourself, what drives you and excites you about the business? Do not leave the table until you’ve come across an agreement.

Know what you bring to the table: Make sure that your partner has a skill set that is complementary to yours. By having an honest discussion on both your strengths and weaknesses, this will help you understand if both of you can create a successful partnership or require someone to fill in the gap.

Create both individual and company goals: Start creating company goals and then your individual goals. Your individual goals should support company goals. By measuring and holding each other accountable in achieving them, you should have no problems in being committed to the long term success of the company. It is also important that you meet on a weekly basis to review the status of your goals and discuss any challenges that may have come up.

Nip problems in the bud quickly: Like any marriage, partners will argue. To make it a successful partnership, what’s important is how you resolve those issues. Instead of letting a problem or an issue affect you or fester, make sure that you immediately discuss them with your partner. By meeting regularly to discuss this, everyone can address their concerns, create a plan to solve it, and find a resolution quickly.

Create accountability: This is the most important aspect of any business partnership! One of the major issues between partners is a lack of clarity around job responsibilities. Without clearly defining your tasks and responsibilities, there will be some confusion on who is actually running the business. So ask yourself these questions: Are your tasks and responsibilities clearly outlined? Do you know what your job is, what you’re responsible for and how you’re measured? All tasks should be clearly defined and assigned. Make sure that they support the long-term company goals and should also include clear metrics that measure the success of the job. This will measure your progress and help you be accountable to yourselves, to each other and to the business.