Have The Answers!

Guest post by: Ilya Bodner

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Have The Answers!



A good business plan tackles three major areas: The Business, The Market, and Finances. Look at the questions within each of the three areas below and answer them as they apply to your business.

• The Business

What is the legal structure of your business? Will it be a sole proprietorship, a partnership, or a corporation? What is the name of your business? Who are the people in your business? Is your business uniquely positioned to succeed? What are existing conditions within your industry? How do you intend to grow? What is your product? What does it do? How will you handle and deliver orders? Will you back your cash flow with a small business loan?

A thorough business plan is especially important when you know in advance that you will need new business financing. There are countless reasons to have a solid business plan, all of which weigh heavily on whether your business succeeds or fails. The Small Business Association agrees that "the importance of a comprehensive, thoughtful business plan cannot be overemphasized."

The most important reason to have a small business plan is so that you know where your business is heading and what you're doing with your business. You must know the product or service you plan to offer, and how you plan to offer it, market it and price it. You must plan for any problems which may arise, so that if and when they do, you know exactly what to do. Otherwise, you'll reach a hurdle and will have to improvise. Having a small business plan will ensure that you are prepared for these problems when they come.

Among the many other reasons to formulate a small business plan, the most crucial one is that it's nearly impossible to receive any sort of startup business financing without a business plan. Most banks require one up front or they won't even talk to you. And while private investors will generally take on more risks than banks and other financial institutions, not even they will invest in a startup business that doesn't have a solid plan. The only investment that a small business plan requires is time and thought, and the payoff is well worth that investment.

• The Market

Who are your customers? Why are they customers? What motivates your customers? What needs are you servicing? How will you motivate people to buy from you? How will you find and attract these customers? Who is your competition? What advantage do you have over your competition? How will you position yourself to win market share? Do you have technical data, surveys, or information sources to back up your claims? Do you need a small business startup loan to support your marketing strategies?

As a business owner, it is your responsibility to determine what the demand for your product is. Knowing the market's needs and how it is currently serviced provides you with key information that is essential in developing your product or service. Too often, small businesses spend thousands of dollars launching a "new" idea with a limited market because of competition. The owner is forced to reevaluate his strategy and determine if there is room for another player.

Although the terms "marketing" and "marketing analysis" can both be described as games of information, they are not to be confused. Marketing encompasses all of the activities that go into promoting a product or service. A marketing analysis is the actual assessment of the target population, competition and needs for marketing that product or service.

• Finances

How much money are you bringing to your business? What are your start-up costs? Will you apply for a small business loan or a small business startup loan? How will the money from the startup loan be used? When will your small business become profitable? What are your financial projections for the next five years?

About the Author: Ilya Bodner RSS for Ilya's articles - Visit Ilya's website Over the course of the last 10 years as an entreprenuer I have successfully launched, managed, and sold off several businesses. Each organization has added some value to my understanding of the business world today. My philosophy has been that 9 things out of 10 that I try will fail, but that golden one is always worth the battle. In my experience that has proven to be the case and my successful businesses still operate today under the management of those whom I have sold off to. Click here to visit Ilya's website More from Ilya Bodner Start Now Dont Wait IRS Tax Information for Business Vehicles Getting things going in a New Business Dive In Head First A True Small Business The 5 Cs of Lending

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