Business Startup: Building a Business Plan

When considering starting a business, first consider the questions that are offered by the United States Small Business Administration. These questions will determine if the business is worthy of starting and whether or not the new owner is willing to plan and put forth the time and effort necessary for a successful business venture. The formal business plan will come next.

List the reasons for wanting to start your own business. Some commons reasons are:
1) Self-management
2) Financial independence
3) Creative freedoms
4) Full use of skills and knowledge

Determine what business is right for you. Answer these questions:

1) What do I like to do with my time?
2) What technical skills have I learned or developed?
3) What do others say I am good at?
4) Will I have the support of my family?
5) How much time do I have to run a successful business?
6) Do I have any hobbies or interests that are marketable?

Identify your business niche. Research and answer these questions:

1) What business am I interested in starting
2) What services or products will I sell?
3) Is my idea practical, and will it fill a need?
4) What is my competition?
5) What is my business's advantage over existing firms?
6) Can I deliver a better quality service?
7) Can I create a demand for my business?

The final question is the pre-business checklist.

1) What skills and experience do I bring to the business?
2) What legal structure will I use?
3) How will my company's business records be maintained?
4) What insurance coverage will be needed?
5) What equipment or supplies will I need?
6) How will I compensate myself?
7) What are my resources?
8) What financing will I need?
9) Where will my business be located?
10)What will I name my business?

Creating a Business Plan

Answers to these important questions will lay the ground-work for a thorough business plan. The local Chamber of Commerce has excellent brochures and information on how to develop a professional business plan. Once the plan is finished, consult with a knowledgeable friend and ask them to give an opinion on the viability of the business. After that, sit down with a banker and ask their opinion.

Seek and Use Local Information for Business Start-up

The local Chamber of Commerce will have informative information on business start-up to assist in growth and success of local businesses. Information on start-up checklists, area workshops, how to write a business plan, develop a marketing strategy, choosing a business name, financing, permits, licenses, regulations, and management considerations with mentoring are all part of the help provided by the local Chamber of Commerce.

When we started our business in 1990, we followed all the suggestions we could find. We did the necessary paperwork and talked to professionals that were willing to assist us with information and advice. When we "opened our doors", we had about $800 in the bank and two weeks worth of work. That small business is now 20 years old, which is a testament to prayer, preparation, hard work, and tenacity.

Additional Sources:
Chamber of Commerce
Small Business Association (SBA)