The Business Startup Minefield
Developing a business plan is one of the most important exercises you can work through as a business owner. It forces you to map out the hazards of the business minefield, before you step on a landmine. No business has ever prospered without a plan backing it up. It doesn’t mean that it has to be pretty; some have been famously drafted on the back of a napkin; others have been hundreds of pages long.
Regardless of its length and content, writing a plan for your business is always a rewarding exercise. When you develop the plan for your enterprise before you make a substantial commitment to the enterprise, you demonstrate that you have the foresight to be responsible for both investor funding and the employment of people in your team. But what makes it more valuable to business owners is the way that it creates a background story. It takes control of the narrative that you created the business with a combination of hard work, risk taking, and extensive planning.
Three Basics Of Business Structure
The following are a few key points to cover when you draft a plan before putting serious capital, time, and effort into an investment:
Manage Your Cash Flow
Not all business owners are accounting graduates, or necessarily excellent in mathematics. However, many of them have succeeded in their venture because they created opportunities and resources that helped them manage their company’s monetary system. Cash is still critical to survival in business. One of the fundamental priorities is being responsible for the cash in your pocket. Delegation is a key to solving this problem. There are hundreds of excellent accounting gurus out there who have the skills and credentials to put up a reliable cash flow management strategy.
Create Realistic Growth Projections
Projections are necessary to determine the feasibility of a certain business project. However, these have to be conservative in nature and must steer away from overestimation. There is much truth in projections that do not promise big numbers.
Build Your Team
The more time I spend in startup businesses the more I appreciate the value of building your venture around people, not ideas. Successful businesses are the offspring of forward-thinking entrepreneurs, those who have the right talents to pioneer innovations and accelerate growth. Hence, your plan must allow for building a strong workforce. Having the right people in place is a staple of every successful company.