Pursuing entrepreneurship can be risky, with 45% of businesses failing in the first 5 years, but for most of us entrepreneurship is the best opportunity we have to change the trajectory of our lives and impact our families for generations. Creating a business plan is essential to count the cost, weigh your options, and ultimately prepare you for the journey of starting your business. This starts by asking yourself 3 key questions.
Is THIS a business you should start?
The first step to a business plan is determining whether the idea might be successful. It’s important to consider who your customers are and how your product or service compares to your competitors. After that, you can consider where you are going to get your funds and how you will use them. Creating a cash projection can help with this. Equally important is your growth strategy, figuring out how you will get business and how much it will cost to acquire a customer. You also need to evaluate whether your team can address all areas of this idea.
Is this a business YOU should start?
The next thing is to consider why you are uniquely positioned to start this business. This includes having the skills, capacity, credentials, and experience needed to effectively run the company. Being solid in just one area does not necessarily mean you will make a great person. On the flip side, however, you don’t need to be a finance or accounting expert to be a successful entrepreneur.
Is this a business you should start NOW?
The business plan is meant to help you determine how well your idea satisfies all of these areas. If you have tons of capital and a great product then you can add to your team by hire, but if you don’t have the capital or the capacity then it doesn’t matter how good your idea is until you can devise a plan to overcome those obstacles.
The Cultivate Launch Track is a free program designed to help you through the business planning process. Our Basics members get the online course for free, including one discovery consult, online access to the course and other member benefits, worksheets, and additional training lessons. Our PRO memberships are $200/mo, with downgrades available at any time. This includes monthly one on one advisory sessions. Sign up today to get the Launch Track Checklist.