Coming up with a business plan is not something to be taken lightly. Though it may come as easy as 1-2-3 to other people, not everyone has that talent. If you are thinking of starting your own business, I think that there are two aspects that you should look deeply into. One is the financial aspect and the other is the lifestyle aspect.
Let us look into the financial aspect first. Naturally, if you want to run a business, you have to make sure that it will fly. A business exists to make money. You have to make sure that you can live off your business in the long run. Entrepreneur Magazine offers some helpful guide questions:
1. What initial investment will the business require?
2. How much control are you willing to relinquish to investors?
3. When will the business turn a profit?
4. When can investors, including you, expect a return on their money?
5. What are the projected profits of the business over time?
6. Will you be able to devote yourself full time to the business, financially?
7. What kind of salary or profit distribution can you expect to take home?
8. What are the chances the business will fail?
9. What will happen if it does?
If you are not looking for investors â€“ that is, if you have enough money on your own to start a business, then you can skip some of the questions above. The important thing is that you can somehow project what will happen to your business in terms of earning or failing.
In the next post, let us look at the lifestyle considerations.