Tag Business Planning

Stick to your core strengths

Small businesses that experience success and growth need to abandon the mantra of doing it all.  But far to often, they take on ancillary activities that distract from the core strengths that made them successful.  They find themselves mired in back office processes and either work 16 hour days or the business start to slip.  Success is a great thing, it is after all the point of our business, but success is a very poor teacher.  “I’m a Doctor for goodness sake, I should be able to run my business!” Replace Doctor with any other profession and you have the mindset that get many business owners in trouble.  My advice is stick to your core strengths and outsource the rest. If you want faster expansion for your growing business, click here to learn more about Asset Finance companies..

Don’t get nervous, you don’t have to abandon your patriotism or defy your union brothers.  What I’m talking about is hiring business specialists to perform the tasks that they are specially trained in and you are not.  These can and should be local businesses many of which are also small businesses.  Why have a receptionist turned bookkeeper doing the CFO job when you can hire a CFO on-demand for the two weeks per year that you need them.  Your bookkeeper and bottom line will thank you.  Financial, Marketing, Human Resources, Employee Training and even Sales are areas that can and should be outsourced.  The main benefit for small business owners is the ability to focus on the core business.  The cost of being distracted (sleepless nights, missed deadlines and limited resources) is enough to make the difference in profit and loss.  So now,

get more sleep, make more money and outsource everything that is not your core business.

Starting a Michigan Business Series: How to Structure a Business Plan

Planning is important in any business.  A business plan is a tool that keeps on giving.  Providing guidance when necessary and answering questions when you stray off the beaten path.

A business plan can help you woo investors, get bank financing, identify potential markets, point out potential competitors, and ultimately gives you a clear path and direction for your business.

Quite often business owners skip this phase when launching a business.

As we move forward in our Starting a Michigan Business Series, this weeks focus is on how to structure a business plan.

1. Executive Summary

An overview of your business. Even though this will be at the beginning of your business plan, it should be written last, after you’ve evaluated other areas of your business.

2. General Description

Explain the type of business your in. If it’s an existing business give a history of the company. If it’s a start-up focus on the qualifications for starting the business. Note why the business is needed and it’s chances for success.

3. Products and Services

What are the unique features of your products and services.  Use this section to describe them and how they will attract customers to your business.

4.  Marketing

Specify your target market.  You should be able to show that there are specific market segments that will pay for your products or services.  Outline what your strategy (marketing) will be to attract customers.  List your competitors giving an honest evaluation of their strengths and weakness and how you will compete against them.

5.  Management

List the people that will be active in your business.  Showcase their skills and experience.  Think abbreviated resume.

6.  Legal

What will the structure of your business be?  Corporation, Limited Liability Partnership, S or C Corp?  Will there be patents or trademarks involved?  What sort of agreements are in place between owners?

7.  Finances

List the business’ financial needs and where you expect to get these funds.  Be sure to project revenue, expenses and profits.  Going through this section to create a financial statement will help you understand cash flow, the life blood of every business.  It addition you’ll understand your break-even point and how sensitive your business may be to market fluctuations.

8.  Operations

What systems or process will be used in your business?  Where will your business be located?  What type of facilities will you require?  Do you need supplies?  Where will be the be obtained?  What will the hours of operations be?  Use this section to explain operational process for your business.

Your executive summary is going to be the most important part of you business plan.  Most investors won’t get pass this point, so be thorough when crafting it.  Focus on drawing the reader in, give them a reason to move past this section and on to your overall plan.

Remember the depth and complexity of your plan will depend on what type of business your launching.  No matter what, it’s an important exercise in getting insight to your business pre or post launch.

What do you think, is a business plan still a important part of launching a business?