It had become a widespread reality that you do not have to have a degree or an MBA in business administration or management before you could successfully run a business; be it the small, medium or large scale. Though, the principles of business success are rooted in books but they reality and practical applications of these principles are beyond the pages. So, do not be deceived. The reality is that you could even have a PhD in Business Management yet end up a branded failure. Let’s look at it this way, how many successful businesses are managed by business degree, MBA or PhD holders? Just think about it.
In Psychology of Faster Accomplishment, we highlighted the twelve laws of faster accomplishment. The article was summarized by drawing the three driving forces to the other nine laws. In this we shall be looking at the considerations you will have to analyze before stepping out as an entrepreneur or a business person. Most businesses fail because of abject ignorance to what will be covered in this piece. Planning is inevitable for success but let’s get it clearer. One of the primary reasons for planning is to develop a winning and sustainable strategy and the reality is, in a competitive market, the player with the best strategy, wins. So, if you must win, you must be sure to develop the best strategy. Understand also that it is not just about planning, but it’s about developing a workable, feasible and realistic plan.
For a plan to be strategic, it must be simple and understandable, possess measurable parameters within the confines or reach of the organization or person that will execute the plan, it must be attainable, realistic and workable over a period of time. This is to say that your plan must be SMART.S i.e. Simple and Easy to understand, Measurable, Attainable, Realistic, Time-framed and Sustainable. Your sustainable advantage keeps you in the market.
Strategy is simply a today’s decision that will take care of tomorrow’s challenge. Invariably, strategic plan is a futuristic plan and if you must start a business, you must have a strategic plan embedded in your business plan. Understand this, entering and/or running a business without a business plan, is like pulling a heavy-duty truck right behind you. The situation will be filled with heavy-duty struggles, no direction, unclear vision, mission and objectives, inefficiency, poor output, poor management, among others.
To eliminate these struggles, you must handle these issues before you start a business;
1. What Am I Going To Offer?Understand the need and think, un-think and rethink about the product/service you want to deliver. What value are you going to offer? What problem is it going to solve? Why must people buy from you? What benefits will people derive from your product/service? Get all the features of your product or service and convert them to benefits.
2. Why Must I Embark On The Business?Understand clearly your vision, mission and objectives. If these are wrong, your business will surely fail. A right mission/vision/objective will keep you going even when the right product/service fails. The right mission takes you and sustains you through the making process. Develop the right mission to achieve the right business goals.
3. How? Developing and understanding the right strategies could give your business a leap if all other aspects are properly taken care of. Remember, the player with the best strategy, wins. Without strategies, products/services will not be produced and delivered, without the products/services, there would be no need satisfaction, if there is no need satisfaction; goals are defeated. When goals are defeated; the business comes crumbling. Note that to develop strategies; you must have full understanding of your operational plan. It is therefore eminent that you break down your business processes into discreet tasks that you can understand and handle. Be sure to be realistic.
4. Who? The “who” covers all human aspects of your business. Your employees, partners, suppliers, customers and the others. Who will be your be your employees, partners, suppliers and customers. All these things need to be planned.
5. What Are My Resources? We’ve covered part of the resources in the “WHO”, that’s your human resources. There could be other non-human resources you inevitably need for your business that will generate your business budget. These resources could be raw materials, machineries, land, offices, office gadgets and the rest of them. Be sure to articulate your resources very well.
6. How Much Will It Cost? Cost is covered in every aspect of your business. Including the direct and indirect costs, controllable and uncontrollable costs, capital costs, investment cost, among others. Be sure to articulate all costs as any error can lead to budget deficit.
7. What Is My Competitive Advantage? Competitive advantage is simply what you do or offer that your competitors do not or cannot imitate or offer. 8. What Is Your Distribution Network? You must prepare an effective sales and marketing plan if not your products and services will remain with you.
9. What’s Your Financing Strategy? Capital is one of the limitations to start-up businesses. It is therefore important that you clearly specify your financing terms whether personal funds, family and friends’ support, loans, grants or any other. Be sure of how much you need to start and when you could possibly need more.
10. What’s Your Revenue Stream?In business, figures give words meaning. You must be able to say categorically the sources of revenue to your business and in what volume you can sell monthly, tri-monthly, quarterly, yearly and/or more. Investors and bankers always look for a laudable financial forecast and streams, so be sure to have a good cash-flow.
Other questions you will consider will cover the legal backing for your business; choosing the type of business structure, registering, taxation, licenses, accreditation and others.
Taking out a good time to answer these questions and more, can hand over to you, a qualitative business plan,so commit yourself to uncovering the answers beyond these pages.
http://www.bntcinternational.com/2014/07/before-you-start-your-business.html
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