In spite of the current economic crisis, Florida remains one of the most attractive places for both aspiring and seasoned entrepreneurs to start new businesses. But, before you begin investing capital in your new idea, and announcing your grand opening to your closest friends and family, take adequate time to thoroughly research and plan your new business venture. Write a business plan!
The desire to start a new business is admirable, but it will take much more than mere desire to build a successful company. According to the Small Business Administration (SBA), more than half of the businesses that are started end in failure, and most of those failures are due to lack of planning.
Proper planning is crucial when starting and building any new or existing business, and a business plan can make the difference between a thriving, successful business and short-lived, failed company. In case you’re still not convinced, consider these 5 reasons you should invest in a business plan for your new venture:
1. Having a Plan is Less Stressful than Not
We can all agree that when you plan your path, navigating it is not as stressful as it could be. Your business plan helps you organize your thoughts in writing and in your mind. When your thoughts are organized, your path is clearer and you’re less likely to be burdened by a sense of overwhelm. Your stress level is reduced and you’re able to focus more on growing your new business and less on stressing about it.
2. Assess your Strengths and Weaknesses
When you sit down and begin writing your business plan, you’ll have to consider every aspect of your business; from the finances you need to the skill sets you require. You’ll be able to determine where your strengths and weaknesses lie; what you bring to the table and where you’re lacking and may need more help.
3. Build Partnerships
A good business plan will outline the overall mission and objectives of your company, and will specify the plans you have for starting and building your business. Also included in your plan are your thoughts – whether literal and idealistic – about the growth and potential of your company. All of this information can help make your business more attractive to potential partners, and help you determine if you’re both on the same page before entering into a partnership.
4. Estimate Business Start-Up Costs
Most entrepreneurs underestimate what it will cost to start their new business, which can make getting through the first year tougher than it has to be. The best way to estimate your start-up costs is to consider every item, person, service, tool or resource you will need to successfully start and run your business during its first year. A good business plan can help you determine exactly what you need and how much it will cost to get your business through its first year.
5. Make a Good Impression on Lenders and Investors
Funding is critical for any new or old business due to the often unpredictable startup and operating costs. Before an investor agrees to lend you capital, they will inquire about the viability of your new business venture and will want to know the plans you have for growth. A business plan for an entrepreneur can be just as important as a resume for a job seeker in that it shows potential lenders you are serious about the success of your new business venture.
If you were building your dream home you probably wouldn’t begin investing money on supplies until you had a blueprint that detailed your construction plans. The same should be true when you’re starting a new business. Although a solid business plan can be the blueprint for your business, many entrepreneurs totally disregard its importance. This disregard and lack of planning often leads to failed businesses. Before you make the same mistakes half of new business owners make, hire a business planning lawyer to prepare a formal business plan outlining the vision and plans of action you have for your new business venture.
Tags: business lawyer, SBA, write a business plan
