I just ran across a great quote by Suze Orman: “You need more than just passion to start a business – you need a plan.” Often, when people start a business, they start doing what they love doing, and spend money on what they think will help them get customers. Often this results in the use of resources that could be better used elsewhere.
Think about this: When you need to visit a friend, and this friend lives in a new place. Should you just get into your car, or jump onto the next bus that stops at the corner of your block, and figure out how to get to your friend’s home? Or should you do some research first? Well, unless you have time, and like the adventure of getting lost, you’ll probably ask your friend for directions, or look it up on the Internet or your GPS.
A plan does not have to be a thick manual. It can be a few pages. A good plan will assess the current market, identify your niche/approach, and your financial goal. If you want financial backing from a bank, you’ll need a little more information about the supply and demand of your market niche, as well as your operating costs.
If you’d like more information, please do not hesitate to send me a note.
