I bet you are well aware that many of us do dream of achieving the financial independence and status that come with the success by building up their own business. You see, owning and building up a business is 2 different issues! Owning a business is pretty straight forward; in fact you can sort of own” a business and be your own boss with less than $100 dollar!
But building up a business to a successful stage will require lots and lots of real hard work! It could also takes much longer hours than your normal job, or any pay package requirement that will are required to commit. A lot of people did not realize all these till they are face to face with it and got a shock of their life!
So what we need to at least prepare for your self prior starting up a new business, whether it is a traditional business model or online business model. Let’s start with the very basic pre-requisite:-
Business Start Up Plan
Yes, a PLAN; But not just any viable on paper only” kind of plan. The plan will walk you through the whole business process; It will provide you directions when you are loss; Guide you through when you are facing constraints; Encourage you when you are down; Give you a pat on the back when you finally made it thru!
You love to have all these? Well then you got to be as detailed as possible when comes to drawing up the business plan. There is no magic formula. You get what you put in.
For the very beginning, a business start up plan must states clearly the purpose of its existence. Including detailed descriptions of what it will do; what kind of activities that it will be ventured into.
Yes, most people will get over excited with writing down the above Mission Statement”. But, after writing all about what your new business would be, it’s is of vital for you to honestly access the market condition, and the demand and supply environment.
Way before you wanted to present your business plan to others and seek any financial support if needed, the business plan must also include as complete information as able to on the areas of challenges your new business are expected face with while on its journey to success; It ought to also include all foreseeable possible opportunities it could tap on and exploit further when the time is right. All these information will form an important supporting factor in presenting to any potential investors for your new start up business.
To capture the attention of potential investors for your business, your business plan must include a detailed financial analysis. You would wonder, how on earth to get such Non Existence” Data for your yet to be established business!
Well, for yet to be formed new startup business which of course is without any financial history or trend, this analysis section could be drawn with projection up to 2years in future. It could be based logical business assumption; with a detailed of both current and projected market environment analysis and probable business breakeven period analysis.
Effective and realistic assumptions are not just coming from the opinion of its business owner; in most instances, business owner’s assumptions are build on own perception based on his ideal condition.
To obtain a much more accurate and logical projection, independent external financial analysis party should be consult. Their analysis should be much wider and detailed in term of:-
1.Proposed initial and on-going business funding requirements,
2.Business funds allocation and utilization,
3.Business cash flow projection,
4.Profit and loss projection,
5.Business entity’s balance sheet,
6.Equity returns to investors,
7.Short and mid term future foreseeable profit projections.
Viewing through all the above conditions and requirement, you should be well aware that a new business is neither easy nor cheap to venture into. But as internet becomes a common accessibility to us, online business has been becoming most exciting places for new business with smaller capital needed to claim your virtual estate hold.
Of course some could still remember the bubble burst of the early famed stage of internet era. But even about one decade after that episode, Internet still remains a great option for new business start up with limited resources. And yes, we could still hear of new online business start up which continue to excel.
Building up and owning your business gives you the kind of freedom that normal career couldn’t provide you. And it puts you the owner, totally in charge of your own self defined financial future.
Agreeably, it comes with lots of hard works and persistency as with any traditional business model.
But, the reward is truly worth every single minute that you put in for bring the business up and grow to success.
Be truth to yourself, get prepared for it, plan your path, and work your plan out. You could be there too!
Article Source: The FREE Article Distribution Center