Don’t let these stop you from having a business plan for success!

A recent study of 29,000 business startups noted that 26,000 of them failed. Of those failures, 67% had no written business plan. Think that’s a coincidence?

Here’s the top 10 myths Solo Entrepreneurs often have about business plans-usually, the reasons why they don’t have one. De-bunk the myths, and see how having a business plan for your solo business, can actually be easy and fun–and can jumpstart your success!

1. Myth: I don’t need a business plan–it’s just me!

Starting a business without a plan is like taking a trip in a foreign country without a map. You might have a lot of fun along the way, and meet a lot of friends, but you are likely to end up at a very different place than you originally set out for-and you might have to phone home for funds for your return ticket.

Solo Entrepreneur Reality: Successful Solo Entrepreneurs know that the exercise of creating a business plan, really helps them think through all the critical aspects of running a business, make better business decisions, and get to profitability sooner.

2. Myth: I have to buy business plan software before I can start.

Business plan software comes in many shapes and sizes, and prices. Many are more geared at small and growing businesses with employees.

Solo Entrepreneur Reality: Business plan software can be helpful-but it’s not required. Software is more likely to help if you have a more traditional type business, like a restaurant or a typical consulting business.

3. Myth: I need to hire a consultant to write my business plan.

Consultants are an expensive way to have your business plan written.

Solo Entrepreneur Reality: Your business IS you-and you need to be intimately involved with the creation of your business plan. A better strategy, if you think you need professional help, is to hire a coach or mentor-someone who can guide you in what you need to do, not do it for you.

4. Myth: The business plan templates I’ve seen have all these complex-sounding sections to them-I guess I need all those?

The only time you need to follow a specific outline is if you are looking for funding.

Solo Entrepreneur Reality: Your business plan needs to answer ten basic questions-that’s it! Don’t make things more complicated than necessary.

5. Myth: My business plan needs to be perfect before I can start my business.

If you wait for everything to be perfectly detailed, you may never start.

Solo Entrepreneur Reality: If you have at least a first draft that answers those ten basic questions, you are ready to launch your business! Make your business plan a living, evolving document. In the startup stages, review and update your plan every 2-3 months. As you grow and stabilize, you can slow down the review cycle to every 6-12 months. All business plans should be reviewed and updated at least once a year.

6. Myth: I have to do everything I say I’m going to do in my business plan, or I’m a failure.

Many Solo Entrepreneurs never start because of this myth-which leaves them feeling that the success of their future business suddenly rides on each stroke of the pen or click of the keyboard!

Solo Entrepreneur Reality: Think of your business plan as a roadmap for a trip. Expect to take some detours for road construction. Be flexible enough to take some exciting, unplanned side trips. And don’t be surprised if instead of visiting Mount Rushmore, you decide to go to Yellowstone, if that turns out to meet your vacation goals better!

7. Myth: A good business plan has a nice cover, is at least 40 pages long, must be typed and double-spaced…

Business plans intended for investors, such as a bank or venture capitalist, must meet certain requirements that such investors expect.

Solo Entrepreneur Reality: As a Solo Entrepreneur, your business plan need only satisfy YOU. It might be scribbled on a napkin, on stickie notes on your wall, or consist of a collage of pictures and captions. It might be all in one document or scattered among several mediums. As long as you know it in your head and heart without having to look at it, and and it is easily accessible to you when you have doubts, that’s all that is necessary.

8. Myth: I don’t need a loan-so I don’t need a business plan.

YOU are the investor in your business-and would you invest in the stock of some company without seeing a prospectus?

Solo Entrepreneur Reality: Seeing your plan in black and white (or color, if you prefer!), can give a whole new view on the financial viability of your business. If “doing the numbers” seems overwhelming, remember you don’t need fancy spreadsheets. Just lay out a budget that shows where all the money is coming from (and going), and have an accountant review it for additional perspective.

9. Myth: My business plan is in my head-that’s good enough.

I don’t know about you, but I sometimes can’t remember what I planned yesterday to do tomorrow, if I don’t write it down!

Solo Entrepreneur Reality: There is a real power in writing down your plans. Some schools of thought advocate that the act of writing a plan down triggers our subconscious to start working on how to manifest that plan. And, of course, it’s a lot easier to remember when you have it in front of you. And a lot easier to share and get feedback from your non-mind reading supporters.

10. Myth: Friends and family are the best sources of feedback and advice on my business plan.

If your brother is an accountant and your best friend is a market research expert, then this might be true.

Solo Entrepreneur Reality: As well meaning as our friends and family can often be, they just aren’t the best way to get honest, objective guidance. Instead, seek out folks that have specific knowledge that will help you, are willing to be candid with you, and that have a genuine interest in helping you succeed. A business coach is one resource to consider!

Copyright 2004, Terri Zwierzynski – Accel Innovation, Inc.

Looking for small business plan usually refers to business owners who need to find ways to compose a well-written business plan. Most lenders, including commercial banks, credit unions, and the Small Business Administration (SBA), require a business plan in order to apply for a loan. These lenders analyze a plan, along with other required financial documents, to assess the risk a potential borrower poses. A sound business plan can help owners secure loan funding and attract potential investors.

The first step in looking for a small business plan is to find financial companies that offer advice on how to write a business plan. Many financial companies, including lenders, provide online websites that give owners access to step-by-step guides, along with examples, on writing a successful plan. Businesses may also seek to hire a professional business writer to develop their plans.

Small business plans usually include the same type of information. The first part of a plan contains a cover sheet, statement of purpose, and a table of contents listing additional sections. The first section describes everything about the business itself: marketing plans, personnel, competition, operating procedures, and business insurance. The second section of a business plan consists of financial data, including loans, list of equipment and supplies, a balance sheet, a cash flow analysis, profit and loss statements, and breakeven analysis. Some plans may even have a third section where all important financial documents, resumes, and contracts are kept.

Individuals looking for business entrepreneur are usually looking for a business partner. A partnership allows two or more individuals to start and operate a business, splitting the liabilities and profits evenly between all partners. Many start-up business owners choose to bring in a partner who has expertise related to the business and who can contribute the needed capital for start-up and operating expenses.

When looking for a business entrepreneur, individuals can take advantage of several online websites that connect potential business partners. These sites typically require individuals to register and complete a profile that details what they are looking for in regards to a business partner. Then, registered users can browse other listings and profiles to find a potential match. When using a site that matches potential business partners, some of those partners may be silent investors.

It’s important to note that all partners are investors, but not all investors are partners. An investor is simply someone who contributes capital to a start-up or existing business. Silent investors have no input on the business’s decisions and may or may not enjoy a portion of its revenue. Partner investors, however, do have input on the business’s decisions and do receive a percentage of the business’s profits. There are also angel investors, individuals or groups of investors who contribute capital to businesses. Angel investors typically require businesses to sign an agreement that outlines the terms of the contribution. They may ask to receive a portion of the profits.

At one time, every chef has dreamed of opening his or her own restaurant. Indeed, owning a restaurant of your own can be a great way to put yourself squarely in charge of your own financial future.

There is a good reason why owning a business remains such an enduring American dream. There is a freedom that comes with knowing that you are responsible for your own future success.

== Things To Consider ==

For those considering opening the perfect restaurant, however, there are many things to consider. The failure rate for new businesses is notoriously high; an this is true for newly opened restaurants as well.

Therefore, it is very important for the potential business owner to spend as much time and effort preparing and creating a business plan as they do finding the perfect location and the best restaurant ovens.

== The Strengths And Weaknesses Of The People In The Business ==

It is important to take stocks of your own individual strengths and weaknesses when creating that business plan for the new restaurant. For instance, if your strengths lie in the financial field, you may be able to create the financial and budget portions of the business plan on your own.

The potential restaurant owner will likely be able to detail the actual equipment that will be needed to open the restaurant, as well as the monthly rent or mortgage for the location of the restaurant.

== Seeking Out Assistance ==

When it comes to some other parts of the business plan, however, the entrepreneur may need to seek some outside assistance.

For instance, few restaurant owners double as tax or legal experts, so it is important to seek qualified, independent help when preparing the legal and tax portions of the business plan.

== The Key To Getting Financing ==

A solid business plan is a complicated document, but it is an important one as well. The properly prepared business plan is the key to getting the financing that will be needed to get the restaurant doors open.

A business plan will also be important when seeking private investors or business partners. Any savvy businessperson will want to look carefully at the business plan before deciding to give up their hard earned money.

There’s an old adage that states ‘A business that fails to plan plans to fail.’ One of the top reasons that new businesses fail or enjoy limited success is lack of or ineffective planning. The bottom line is this: you can have the best idea in the world but it is only as good as how well it is put onto paper. The best way to do this is with a business plan and I know in saying this that I am not exactly turning you onto the mother lode.

Business plans are nothing new in the world of business and you may even already have one. That said, there may be some additional applications for the business plan that can help you continue to grow and prosper. Just to summarize, you want to make sure that your business plan contains the following key elements.

First, a business plan should have some sort of summary. This is particularly effective for entrepreneurs who seek venture capital. Many venture capitalists or angel investors read a lot of proposals and see a lot of business plans so a captivating opening summary is a great way to capture and retain their interest. A summary should outline the key aspects of your business, contain some sort of mission statement, and hit the highlights of why the reader should keep turning the pages and learn more.

Next, a business plan should outline the key features of your business. How was the idea or product generated? How is it unique? What makes you and/or your business stand apart from the competition? What market share can you expect to capture with the business running at full steam? In this part of your business plan, you may want to include a detailed description of your products and/or services, especially if they make a compelling argument for why your business stands apart from the crowd.

Next, you will want to include some operational information that outlines how your business is being run. Who are your customers? Why do they want the product or service? How is your business currently being marketed? Who are your current staff, what are their roles, and what growth in staffing do you expect? Answers to these types of questions not only keep you focused, but also address key issues that potential funding sources will need to know.

Next, you will want to include some projections for things like the scope of your customer base, staffing, business volume, and revenue for at least the next five years. Remember, this will not only be appealing to potential funding sources, but will also help keep you on track to reach those goals as your business grows.

Last, a business plan should clearly outline the financial needs of your company. As you might gather, any sort of funding source for your business is going to want to know how much capital you need to reach your goals. Also, you need to be thinking about your capital needs long before you ever seek outside capital. Lack of funding is also a common reason why businesses fail so make sure this is not an overlooked part of your planning process.

In closing, treat the preparation and updating of your business plan as the owner’s manual for what you are working to achieve. In doing so, you will be able to effectively attract capital (as needed) and it will also serve as a sort of written contract between you and your business and it can be remarkable how real your business dreams can unfold, just as planned.