Why does one enter into a new business? The primary answer to such a question is the desire to increase ones earnings and savings. Starting a new business basically requires a lot more from the entrepreneur than just time, effort and money. It requires a huge commitment.

It is a commitment to persevere despite all the difficulties you may encounter through your journey. Statistics show that once a new business has survived the first five years or adjustment years, it will start to grow and produce profits. Statistics also show that 80% of small businesses do not make it through the 1st year. Of those that were left, 90% would close down during the adjustment years. This is why a strong commitment is required to when starting a new business.

In all life’s endeavors, the success rate is higher if there is a plan. For a business to succeed careful planning is required. A concrete and well detailed business plan must be made. The old saying goes “if you fail to plan you have planned to failed”which is very true in business. Creating a business plan may be time consuming and at times redundant. But remember as you sweat through all the paper work that this is a necessary step, a step that may cause the failure of the entire business if not done. Also bear in mind that going through this entire process makes you prepared for most, if not all, circumstances that may arise.

A new business plan must first state the vision, mission and goals of the company. This enables all the members and staff to focus on what the business stands for. It actually serves a similar function as the Constitution. That’s how important this stage is with planning a business. The foundation and the direction of the business will be determined through this process. Target markets, sales forecasts, products, strategies and even future expansions can be written in this plan so whatever your business is, careful planning is essential.

As you plan, you concurrently research competitors and the industry. This will enable you to learn the needs or special factors that must be considered in the business. There are organizations and even private companies that offer help not only in planning but also in the purchase or negotiations for product lines, distribution systems and networking with people in the same business. Some even offer free business plan help. Take advantage of all these organizations such as SCORE to help you create your business plan.

When opening a new business, an entrepreneur should be ready to commit their finances, time and efforts to make the business thrive and survive. To ensure any level of success, a well detailed business plan is needed to guide you through this new journey.

One morning you might wake up and like a ton of bricks a great idea for creating and starting your online business comes to mind, and you hadn’t a doubt in your mind that you could turn it into a huge success. Start with the end in mind. Are you planning to start a new business? If you find a viable business you like, document your intentions, intended deal structure and what exact information you need to start your purchase due diligence.

Many small businesses start with a business plan based on guesses. The idea for you business plan comes to mind, its time to start the new business and you are all ready to go but the only problem is that you need money, so it is time to find the investors, angel investors and you will need to show them your business plan.

If you plan to jump into the fray, however, the first step is to create a solid business plan. The business plan you create will be one of the most important documents in your new businesses. It doesn’t matter if your business is just getting started or it is an existing business, creating a business plan helps you understand your business.

If so, have you started writing your business plan yet. In all honestly, when writing anything, even a business plan, it is the wording that makes all the difference in the world. Writing a plan for your project requires you to have an idea and vision of the whole project, the component parts of the project and the operating system behind your project.

The world is full of business-minded individuals, whether their goals are to lead a multi-million dollar company into the future, or simply start their own small business to provide services that are in demand and services they enjoy performing. You will need a brief outline of your business, your mission statement, goals, balance sheet, income statement, projected cash flow and plan for unforeseen hindrances.

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. Show why potential customers will award business to you, rather than your competition. One page of your business plan can have the following information: it can contain the potential partners, employees, board of directors, and you can show where the business will be in future years.

Angel investors want you to succeed and often they also like to give their input and if you end up taking their money for your startup, the need to realize that their input needs to be taken seriously. One of the great myths is that you only need a Business Plan if you are going to borrow money from a bank. A business plan of a start up business making no money — for example — is going to be bigger than the ones that are running and making money already. The angel and VC investors, are risking their capital money when they invest in your business, they hope in the long run they will receive returns that is worth many times what they put in.

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.

If you are a manufacturer wanting to use your business plan to attract investors, then your plan must do two things. It must:

Comfort prospective investors with putting their money into your hands, and Show why potential customers will award business to you rather than your competitors.
Earn the Trust of Skeptical Investors…

Prospective investors want to select the best investments. For an investor, this means earning the highest return on their money for the risk they take. Besides their own research, they seek more specific information from business owners and entrepreneurs about potential investment opportunities.

The major challenge to investors is deciding what is a good opportunity. Often asked to invest funds with little reliable information, investors have difficulty deciphering information about the various investment alternatives they are evaluating. This leaves them fearful of getting into an awful deal and skeptical of the deals being presented. In addition, time pressures often force investors to decide on investing in a business when their time frames don’t align with the business’ need for funding.

To your prospective investors, the most important factors you must show are results and evidence. They simply want the opportunity that they enter to match the expectations that they have developed. They want to be educated about the investment opportunity and the investment options available to them. But, they won’t accept this education at face value; they want to see the evidence to support it. Even for niche businesses.

When investors object to investing in a business, the objection is often of the “Educate me…” type. Tell me your story, show me your numbers, and then prove it. Prospective investors want information that they can validate, options and risks that they can see, and to be educated about your specific business. Moreover, they want to know why you and your team are the ones that can produce the projected results. If your business plan doesn’t address these “educate me” objections, it will fail to win the trust of your prospective investors. When that happens your plan will not get funded. Period.

If you successfully win the trust of potential investors, then you must be able to…

Show Why Customers Will Award Their Business To You Rather Than Your Competitors…

Investors invest money in businesses based on the business’ expected cash flow. To create cash flow, you must first win business. That’s why it is important for your business plan to show investors why customers will award you their business at a price that allows you to provide investors a return on their investment.

When potential investors begin evaluating your business plan, they are likely to be skeptical of your ability to consistently win business. In their minds, there is already a manufacturer who is providing the same or similar product as yours to your prospective customers. They are skeptical as to why prospective customers with little or no time to investigate the options available to them and who are reluctant to upset their own customer base would change manufacturers.

You can expect your potential investors to understand that your customers need to move product and generate higher margins. They expect quality and general customer support to be givens, the basic requirements to win business. Therefore, their focus will be on understanding how you help your prospective customers earn more money.

To your potential investors, the biggest problems your customers face are products that stay on the shelf, don’t work properly, or carry low margins… situations that cost your customers money and the opportunity to make money on other products. Does your business plan show investors how you plan to solve these problems? It should if you want to capture their attention.

Be sure to clearly explain why you can win over prospective customers who have extensive experience in dealing with manufacturers in your market space…customers who have “heard it all.” Your business plan has to reveal to investors how you’ll protect your products from damage during transit, guarantee their availability, offer a wide range of product selection, and modify the product as needed. In short, your business plan has to leave investors feeling confident that your product will be delivered as ordered, undamaged, on time, and working properly.

You’ll also have to convince investors that you can overcome the biggest objections your customers will have in switching manufacturers, which from the investors’ perspective will involve product quality and your ability to deliver on time. If the product stays on the shelf too long or doesn’t work properly because of poor quality then that is a problem. If the product can’t be used or sold because it hasn’t been delivered then that is a problem.

Prospective investors know that to win a customer’s trust you’ll have to show them quantifiable evidence that they can earn more using your products and that the risk of changing over to you is low. Since this is what it will take to win business, it is only logical that your prospective investors will want to see this same evidence before they invest in you.

Points For Manufacturers To Address In A Business Plan

In summary, if you’re a manufacturer trying to attract investors, these are the points you must address in your business plan:

How and why customers will earn more money doing business with you rather than your competitors. How and why they will have less hassles and it will be easier for them to do business with you rather than your competitors. How and why customers will face less risk doing business with you rather than your competition.

When you address these points with verifiable evidence to support your position, potential investors will have to conclude that they would be foolish to invest in any other manufacturer but you.

Candidates are always looking for an edge in job interviews, and they try to gain that edge in different ways: crafting a killer resume, dressing for success, practicing interview questions and answers, researching the company, building a brag book, or even practicing positive body language. However, one thing candidates often overlook, or never even consider, is creating a business plan for interviews. Simply put, this type of plan is a short one-to-three page document that states in as little or as much detail as necessary what a candidate will do in the position that he or she is interviewing for.

To write a personal business plan correctly, you have to take the time to think out the position, your goals, and the company’s goals. You have to research the company and your specific desired position in it, analyze what it takes to be successful, and write what is, essentially, a “to-do” list for yourself. This list should take the form of incremental goals, ideally organized into a 30-day plan, a 60-day plan, and a 90-day plan. It is a lot of work to do before you even know if you’re hired, but this kind of effort will set you apart from other job seekers and absolutely get a hiring manager’s attention. Not only that, but it will increase your chances of success once you do get the job…because you’ve already mapped out how to be successful.

The 30-day part of the plan is the easiest to put together. In your research of the company and your discussions with the recruiter you are working with, you should discover what the company’s training plan looks like-how long it takes and where you receive it. So most of the items in your 30-day plan should be along the lines of attending training, mastering product knowledge, learning specific corporate systems, traveling to learn your territory (if you’re in sales), meeting other members of the team, or reviewing accounts.

The 60-day part of the plan usually includes more field time, customer introductions, reviews of customer satisfaction, fine-tuning your work schedule, and getting feedback from your manager.

The 90-day part of the plan is the “getting settled” part of your new job. It should include things that take more initiative on your part: landing your own accounts, scheduling programs, or coming up with new ways to get prospects’ attention (again, if you’re in sales), as well as continuing to get performance feedback and fine-tuning your schedule.

Keep in mind, these examples are extremely generalized. The more specific you can be in your plan, the better. Research the company and the position, even if you’ve done the same kind of work for years. Your business plan doesn’t have to be long and complicated, but it does have to show that you’ve done your homework, analyzed this job, and thoughtfully considered how you can best serve this particular company. That’s the edge that will get you hired.