Before even starting up a business, an entrepreneur should create a business plan. A business plan sets the foundation for the organization that you are starting up. It lets you develop and understand business strategies, and lets investors see the potential in your business.
When working on the timeline for your business plan, it is essential to look into every detail to stay abreast of your schedule while starting and running the business.
You can’t just open a shop and start selling without making sure that everything is in the right order.
- Determine whether you want to put up a corporation, partnership, or single proprietorship;
- Acquire all the licenses and permits;
- Seek the right location for your office, retail or manufacturing space;
- Design and develop your product;
- Purchase equipment such as a POS system, shelves or other materials needed in your office, retail shop or manufacturing space;
- Hire the right employees;
- Create strategies and launch your marketing campaign; and
- Officially open your business.
Along with these, you also need to identify your goals in starting this business. This is the reason why a company presents its goals, mission, and vision so that others may be aware of what kind of company you have.
Similarly, all employees should be aware of these so that they would work and adhere to the values and vision of the company.
Creating a contingency plan
Hitting a bump should not discourage the entrepreneur, but should be a wake-up call to check on what has gone wrong and to create new strategies.
An entrepreneur should be able to foresee the effects of what he has written in his timeline. Contingencies should also be considered should your assumptions fail. Your contingency plan should let you identify the following:
- What to do if you don’t reach your sales target in a month;
- Who can help you if you need to increase your resources to boost your sales;
- What to do in case of fire, flood, earthquake, etc;
- How to handle the sudden resignation of an employee who holds a very important position;
- How to adjust the price of your products and/or services if there is an increase in the cost of raw materials, labor, etc.
You should understand that despite setting a thorough contingency plan, it is possible that something unexpected may occur. Careful planning is not an assurance that you can avoid some incidents. Just always be prepared and foresee different scenarios so that you may have a vision on what you would do when such instances happen.
You can’t actually list down every scenario. Therefore, it is always a good idea to review your business plan every six months to give you an opportunity to check if your assumptions are correct.
If you feel overwhelmed in creating a business plan, seek advice from people who are knowledgeable about the business. Putting up a business means putting yourself and your resources at risk.
But you can reduce those risks if you know what you are doing. Never be afraid to seek an expert that will help you understand what you are getting yourself into. Educate and empower yourself to be strong and resilient for you to reach your aspirations.
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