When you are excited about the prospect of starting your business, the planning stage can seem tiresome, however I cannot overstate the importance of this part of the process.
Researching your idea thoroughly, preparing a business plan, and a cashflow forecast are vital components of a SUCCESSFUL business (even if you do not need to approach a lender for money – remember, this is for YOU)
Top tip - there is a temptation to worry that someone else will ‘get in first’ – however this fear is usually completely unfounded. Do not rush – it is better to take your time and get it right! (This will also give you a better chance against any competition if it does exist!)
Research your idea and your market
Time spent on researching will be valuable – whatever you discover! Do not be afraid to find bad news - it is better to uncover direct competition or flaws in your plan at this early stage rather than when it is likely to cost you real money. Use the internet, books, magazines, trade press, and libraries. Talk to business advisors, friends, relatives, other business people,
Top tip - learn as much as you can about your competition or how similar businesses work in other areas (there is no better way to find their strengths and weaknesses!)
Prepare a Business Plan
There are plenty of sites on the web who will try and sell you sample plans, some of the more sector specific examples may be useful, but if you do not want to part with cash, your bank will almost certainly give you a free template.
Did you know? - One Enterprise Agency undertook a survey of local people whose businesses had failed to start or had ceased trading in the early stages - over 90% of them admitted that they did not have a business plan!
Create a Cashflow Forecast
Sadly, money rarely comes in or goes out at the most convenient time (for example you may have to pay for your stock before you can sell it!). A cashflow forecast will help you work out roughly what you can expect financially in the future – even if some of it will have to be based upon guesswork! This is vital information, particularly if you are planning to borrow money – it is best to plan for the maximum amount that you will need rather than having to keeping going back to your lender asking for more!
Top tip - most businesses have peaks and troughs – planning ahead will help you survive the quieter times. A landscape gardener may be well advised to save some of his summer income to carry through the winter months when work could be harder to find! How does this relate to you?
Start Networking
Networking is a great way to make new business contacts and to put on weight! Often run as breakfast, lunch or social events, it is an opportunity to get to know other local business people and if handled correctly may ultimately lead to more custom.
There will be many formal and informal networks near you. Your local Chamber of Commerce may be a good starting point. Some national networks are BRE, BNI, Ecademy and the FSB. Click on the links to find out more.
Top tip - do not ‘sell’ to everyone who you meet – this is likely to put them off you and your business rather than entice them to buy from you. Your chances of obtaining new business are far greater if you genuinely try and find ways to help them!
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