It’s true! It’s true! What is the answer? You might be asking. Let’s take a quick look. While a well-written business plan is an asset, let’s not forget about two other essentials. First, identify a market. This is the group of people or businesses that has a real need for your product or services, or your “Stuff.” The second important thing is your ability to motivate potential buyers by sharing the benefits of your stuff with them. These are the six questions you need to ask.
1. Are there any differences between what you want to sell and what others offer? Is that a difference in quality, selection, price, durability and versatility?
2. How can you communicate these differences effectively to your potential customers?
3. It doesn’t matter how expensive it is to reach potential buyers. Start-ups with a Marketing Plan can reach small niche markets.
4. How can you manage start-up costs while still doing the necessary work? This includes working with an attorney, an accountant and an insurance broker.
5. How do you measure your profits, losses, and costs? These are the two sub-plans of your business plan – Marketing for expenses and Financial for income projections. This is why an accountant is necessary.
6. What should you do if your plan fails? What is your “Plan B?” Do you not have one? In case sales fall short of forecasts or expenses rise, you should have one. You may have to end the contract at some point. Prepare.
This last question is not only worthy of an answer but also demands one. Why? Too many entrepreneurs “hang in there” too long. This causes what could have been avoided losses of money and time to continue to rise. Start-up owners are often convinced that their Stuff makes them the best. This causes them to lose their objectivity and their ability to see what’s written on the wall.
Your accountant is a crucial member of your management team. He or she will provide you with a dose reality and objectivity, which can be difficult to find when your business starts. Your accountant should provide you with financial statements monthly. Yes, monthly. It won’t be enough to have a once-a-year financial report based on the box of receipts or cancelled checks that you’ll drop off each December. Your business could have died in September if your year-end financials show this. However, you won’t be able to know without monthly statements.
It’s easy. You’ll be well on the way to building a solid foundation for a business that you can be proud to run.
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