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Things to Ponder
Do you want a lifestyle
business or a business that will continue to live on after you leave?
Would you prefer to own
10% of a 50 million dollar company or 100% of 1 Million dollar
company?
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Anyone can start a
business, very few people can grow it into a profitable one.
The information below is meant merely to guide you through the
process of starting a business. No matter how good your idea
or product is without proper planning and due diligence you may
never sell it.
Before You Start
You must understand the market environment;
this includes potential Customers, Competition, Partners and
Longevity. Ideally you or a partner has had some experience
in the industry that your product or service is targeted.
The questions below may require some research on your part, the
research that you do now will be the basis for your business
plan.
- Can your perceived customer base
(or immediate family) afford to buy your product of service?
- Is the market saturated with competitors?
How will you differentiate your product or service?
- Are there any likely partners
that would be willing to sell or jointly market your product
or service?
- Is your target market
susceptible to decline, replacement with a future innovation
or part of a larger market that could easily be offered by an
existing major player?
Further refinement:
Customers: Who is buying? What do they buy? What
can they afford? Why do the buy?
Competitors: How big are they? Who are their
Customers? What is their Strategy?
Partners: What makes them a good sales channel? Could
they be a competitor?
Longevity: Is there an existing Market? Is there new
technology on the horizon?
The questions above are not to
discourage, but merely to help you focus on both advantages and
disadvantages of your product and service. Many people find
that creating an Executive Summary first is a simpler method as it
acts as an outline for the rest of the business plan and provides
you with a document from which you can have an educated discussion
with potential investors.
Plan Overview
- Executive Summary
- Company Overview
- Business Environment
- Company Description
- Company Strategy
- Financial Review
- Action Plan
For more information or to speak
with a professional regarding developing a business plan contact
us. |
