Lack Of Business Planning
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Lack Of Business Planning
Beware the temptation to jump into business before youve done the proper planning. And dont underestimate that temptation. Once you have made up your mind to start a business it is difficult to wait to get going. You want to start moving making money living the life youve dreamed of. But if you want your business to succeed you must take the time to understand it yourself the industry and the market.
It helps to consider how you would approach buying a house. Would you sign a check and move on in? Or would you research everything first to make sure you arent getting a lemon? Treat starting your own business the same way. Don’t invest your time money energy and dreams in a business you don’t understand inside and out. More businesses fail for want of proper planning than do for want of money.
Business plans are perfect for taking you from ignorance to understanding. In order to produce a good business plan you must learn all the ins and outs of your proposed business. And the process of preparing the plan will teach you much of what you need to know in order to run that business.
The main reasons people skip business plans are often the same as the reasons people avoid accounting: 1 many people dont like to write and 2 the time it takes to prepare the plan takes away from the time to run the business. But those reasons those excuses really are just as inapplicable here.
Just because you dont like doing something doesnt mean you dont have to do it. Running your own business will mean sacrifices. Luxuries like vacation time sick days salaries these are the first things to go out the window at least in the beginning. Taxes must be paid shipments must go out decisions must be made invoices must be sent and bills must be paid whether you like it or not. Same with accounting. Same with planning. And as with accounting you can always hire someone to prepare your business plan for you.
The second reason people often skip the business plan stage is because they want to spend the time it would take to plan their business to be in business instead. They see the planning stage as taking time with no reward. But not only is that not true it is also supremely shortsighted. It may be true that taking time upfront to plan your business will increase the time until you can start making money. But it will also likely increase the amount of money you can make. Writing a business plan allows you to explore your business before you start. It allows you to make your mistakes on paper rather than in the real world.
Write a business plan. Youll be better for it. It will save you hassles and make you money in the long term. A good resource is my book The ABCs of Writing Winning Business Plans. This book can be purchased here: The ABCs of Writing Winning Business Plans
What are some of the hassles you might be saved if you take the time to prepare a business plan? How about quitting your day job only to find your great idea won’t pay the mortgage? Or resorting to credit cards to finance the business? Many businesses fail within the first five years. Of those that fail a staggering amount do not have business plans. An old carpentry adage says “Measure twice; cut once.” Let your business plan be your measurement.
About the writer:nbsp;nbsp;Garrett Sutton has over twentyfive years experience assisting and advising entrepreneurs families and business in selecting the appropriate corporate structures to limit their liability protect their assets and advance their personal and financial goals through real estate investments and other means of wealth creation.To get a FREE copy of Garrett’s book “What to Know Before you Incorporate” log onto http://www.corporatedirect.comAn author speaker and a member of an elite group of “Rich Dad’s Advisors” hand selected by author Robert Kiyosaki Garrett speaks to investors and entrepreneurs on a variety of topics including asset protection liability limitation wealth creation as well as various business and real estate issues. Garrett has authored Own Your Own Corporation The ABC’s of Writing Winning Business Plans The ABC’s of Getting Out of Debt How to Buy and/or Sell a Business and coauthored Real Estate Loopholes. These titles are included in the “Rich Dad Poor Dad” wealth building book series. Additionally under the SuccessDNA Publishing label Garrett has authored and coauthored numerous books including How to Use Limited Liability Companies and Limited Partnerships and his latest title INSIDER Secrets of Business Personal Credit. Garrett’s books provide an accessible source of information for building your own success.
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