Properly done, the business plan development process will force you to come to grips with all of the real life business and financial issues you will face as you grow your business and raise capital. This process is a long, hard journey and a reality test. Along the way, you will need a lot of motivation and moral support, and, you may even begin to wonder whether you have what it takes to be an entrepreneur.
Today, Enable provides you with a link to a brief test that asks: are you an entrepreneur? We also cover a site developed especially for entrepreneurs that can provide you with the motivation, positive mental attitude and other types of moral support that entrepreneurs need.
Today’s other topic is developing a business plan – especially the tough questions that you must ask yourself and answer objectively.
Support During the Business Development Process
If you have never tried setting up your own business, but wonder whether you have the right stuff to succeed, take the test at www.bizbooksoftware.com/buyquiz.htm. While the test cannot predict your success, it can give you an idea of your potential – and help you decide if you really want to take the leap and be an entrepreneur.
Entrepreneurs that seek assistance, especially moral support and motivation, can go to www.entrepreneursite.com. The purpose of this site is to help you become a successful entrepreneur. It site provides you with resources, and shows you the importance of a positive mental attitude, persistence and perspiration. Most of all, it will get and keep you motivated. It is an excellent site whose credo is, "Success is not about getting rich… it is about making our lives richer."
Dress Rehearsal for The Real World
The business plan development process is a dress rehearsal for the real world. Don’t take it lightly. Throughout the entire process, you will have to objectively and realistically answer tough business questions and deal with complicated financial issues. Some of the hard questions you should ask yourself are:
- Are the products we are developing truly market-driven?
- Do we understand the difference between marketing and selling?
- Do we know and understand the market, customer needs, and competitors?
- Do we have what it takes to develop the products on time?
- Is our business model logical and appropriate?
- Can we achieve and sustain very high growth?
- Do we have proper management in place?
- Are the financial forecasts reasonable and supportable?
Are You a Company or a Product?
You must also make sure that that you are a company and not simply a product. This means:
- Determining what business you are in.
- Deciding what image you will create for your company.
- Providing long-term strategies.
- Explaining how your company will grow, and how it will expand its markets and product lines.
Do You Know Your Industry?
Knowledge of your industry includes a host of factors: market size, trends, segments, analysis, competitors, major players, characteristics of successful companies in the industry, pricing, profit margins, industry norms, trade shows, conferences, the "industry bibles," regulatory agencies, standards, approvals, etc.
Issues You Must Face Up To
During the business plan development process you should also:
- Objectively examine and analyze all the ramifications of your marketing, operations and financial strategies.
- Determine what human, physical and financial resources are required now and in the future.
- Correlate the timing and inter-dependency of the major events necessary for your company to achieve its goals.
There’s No Substitute
Many entrepreneurs try to save the time and expense involved in preparing a proper business plan by utilizing "substitutes." These typically include company brochures, loose spreadsheets, feasibility studies and technical materials bundled together and sent to investors with a cover letter. These substitutes will not help you grow your business, and they will do you harm in investors’ eyes. Investors expect to receive a proper business plan. If you want investors to invest their time and money in you - you do the same, and provide them with a business plan that shows you respect them and appreciate their time.
Published by Israel's Business Arena June 22, 1999