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Wednesday, November 4, 2015

Starting a Business - How to Get to the Business Plan and Why?

OK, it's time to start your own business - way to go! It's a big decision working for someone else who takes care of everything; accounting, payroll, taxes, inventory, and most likely, a huge bunch of other departments and responsibilities necessary to control their own company. But, running your own business has its benefits, as well.

Now, I must mention, please keep in mind, one can be fully fulfilled and inspired while having the job of their dreams also. It all comes down to attitude and personal motivation. If you are working in a field that you are fully inspired by, congrats and be sure to appreciate it as going your own way also has its risks. But, having said that:

The main train of thought is you are your own boss, work the hours you choose and which days to work, and, unfortunately or fortunately, you are purely responsible for the entire success. It's a wonderful way to release yourself from the rat race of 9-5, if you choose, as well as being involved in doing what you love, what you might have a passion for, but you have to begin by asking just a few things:

1. Do you love what you are doing or is it something you are good at? A dream of escaping the normal way the world works can be very inspiring to work for yourself, but you must be motivated to work every morning to do what you have chosen to do for a living.

2. What is it that you believe you would like to do? What interests, area or industry is it going to be? Do you believe there is a market for what you can provide? Have you thought whether the area can handle another entry?

3. Do you have the talent or technical skills required? Just because you feel you are able to do a skill that you consider special, it could possibly not be a strong item to convince customers or investors that it is a valuable purchase or a strong financial investment.

4. What, where and who are the competitors in this area and what separates you from the rest? Why should investors or potential prospect customers choose you? What differentiates you from what everyone else does?

OK, When you're finally satisfied that your answers to these questions are solid, it's decision time, of what business structure works best for you. Is it a sole proprietor, responsible for every area and the entire authority to run the business? Will you have a partner, share the cost, workload and responsibility but also the ideas, profits and every business decision from the get go? Or maybe your decision is to incorporate, including all the financial safety's and securities but way more involved, complex and a costly structure?

This is when you must seek legal advice! Seriously, it is strongly recommended, mainly because it is for you to completely understand all the advantages, disadvantages and to be sue the setup is proper and that you are fully aware of your chosen structuring plan. Most attorneys will offer a complimentary or a discounted-rate initial consultation. Once the decision and plan is decided, a formal name for your new company should be chosen. Make sure it is easy to remember - be sure to not use initials or single letters (A & B & C Limited could be challenging to remember for clients or associates). Also, make it say something about what the business does or what it offers ("Joe's Shoe Specialists" is much easier to spell and remember).

Now comes the real sweat equity work, a business plan. This is the real beginning of your baby, it is the most important part in creating all these topics and proposals in a modernized and easy to follow format; fancy designs do not help your future baby succeed. A strong business plan acts as a formal statement for the financing needs and plans, goals, overall structure and all the initial legal considerations. Think of this as a corporate "resume" to potential lenders or investors and is the main documentation that will be used to calculate if your business could be a worthwhile investment. It also offers the proprietor(s) a opportunity to evaluate and see the operational details of your new company on paper.

A basic business plan should contain a balance sheet, income statement (also known as a Profit & Loss) and a statement of cash flow. Adding in a proposed financial budget for the first year, or as long a period as necessary if a year is impractical is a highly recommended course of action also. There are many formats and structures for business plans and many templates are available online or through formal providers who can assist or guide you along the way.

If you follow these quick tips, and the outcome looks promising you might be able to plan for success. Just remember, as much as this dance of being your own boss and owning your own company sounds exciting and positive, always remember, it will take work and dedication. Not only will you need a strong commitment but it will also serve you well to have a support community around you. Your family and friends can be a huge part of your success. So be sure to evaluate who you have around you and how to involve them and motivate them to join your team and become cheerleaders.

Also, as mentioned earlier, be sure to not discount employment for a solid company that offers future potential and is in the area or industry that fulfills you and connects with your beliefs and passion.

Satisfaction starts with an attitude and a responsibility of commitment to being your best you can be, what ever situation you find yourself in.

I want to wish you good luck in your potential and new professional endeavour, for yourself or as a new redefined employee!

Thanks for reading my article. I am committed to creating a motivated and dynamic life for young and old. I hope this has added value and I ask you to please checkout my website at http://www.GrantOkane.com. I love inspiring people and look forward to speaking with you in the future and hearing about your successes.

By Grant OKane

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