Article: Business Planning For Small Business
Here’s an interesting article I found on isnare.com Enjoy.
Business Planning For Small Business
By Jordi Shoman
Small businesses that need very little capital to get started rarely have a business plan in place. This is because the owners do not see any need to go to this trouble when they don’t need to borrow funds. Just like you use a financial planner when you make investments, you can also use available expert advice to help you get started with writing a business plan. The most common type of business plan for small businesses is the start up plan, but there are other types, such as a feasibility plan or an investment plan.
The most common mistake that small business owners make with their business plans is putting them on the back burner. They never seem to have time for this important aspect of business and are always looking for ways to grow their business instead. Many businesses only sit down to write a business plan when they are forced to look for expansion funding and find that lenders won’t even talk to them about borrowing without one. There is no such thing as being too busy for this part of the business because it is one of the essential elements.
Profit and cash flow are not the same thing. A business plan will help put these terms in perspective for you. The problem with a lot of small businesses is that they think only in terms of profit and then put these profits back into the business. You don’t spend the profits in a business. Once you get established, if you have to constantly put the profits back into the business in order to keep going, then you are not making money. All you’re doing is just recycling the money and you are not making anything.
It is not hard to write a business plan, but it does require an investment of time. You won’t be able to write the plan in one sitting. Rather this is something that you develop over time and add to it as you go along. You can look at a business plan as a work in progress because even after you establish your business, you will still be making changes to your plan.
About the Author: Running a small business or looking to start one up? Visit our Business Planning section for more in-depth resources. Free website content
Source: www.isnare.com
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3 comments
You make some wonderful points. Planning – as an ongoing way of thinking about the world – just doesn’t seem to come naturally to a lot of people. And they do seem to put it off until they HAVE TO DO IT because they are going to pursue outside financing of some sort. Kind of like putting off doing laundry or filing or another task you don’t like – there are consequences for not doing those either!
Within my arena of arts and crafts, many small businesses seem to blossom from ventures previously pursued as an enjoyable hobby. That’s a great way to develop a business – to have something you enjoy doing, grow to such a level that it can provide income for you. But most hobby-business owners didn’t create the business to make money. They usually only want to cover their hobby expenses or simply have fun. It’s sad to see when their lack of planning, and all the resulting frustration and challenges, removes the enjoyment of something they previously loved to do. It sure would be nice if ‘Passion” and ‘Planning’ could blend together a little easier, and more often.
very good post from our team
i wan the article for small business and the what product will use to its.
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