Well After the bright idea: there is Phase 1... the start up phase or the planning phase .
To be honest I do not believe that starting a business without a "Good Business Plan" is a very smart idea. First because of a very old but very true saying:
"If you fail to plan then you plan to fail "
When writing your business plan, you will be brilliant, and well researched, and sound so knowledgeable. Then when you spend 2-3 week or months (depends on the business...and the people) you think it is the most best thing since sliced bread.
Now you can talk to banks, businesses, and buddies.....about investing in your brilliance. They are going to read it, give you suggestions, and be impressed, but the truth of the matter is this.
If you do not invest your own time and resources into the business (first) and show profit.... its just hard.
[ I really don't want to say this because once its in the universe I won't be able to take it back.]
But anyway....
It is disappointing to find out that your friends and family may not be your biggest supporters in the beginning....they probably will be your biggest critics.
- They are going to remind you of all your past mistakes, failures, hair-brained ideas, and the failure rate of most other businesses.
- They will point out everything you do wrong and why they are not buying from you or using your service.
- And to add insult to injury all this great advice and criticism will probably be a deterrent for a few potential customers.
****I do want to say that when no one else will say something good you can count on your mother to still think you are OK. ****
That is the bad part...... but the good part .........is they are Right???.
Just think about it:
How many times have you bought something out of guilt not desire?...(Not that many?...me either.)
Want - Need - Desire? These are Market Analysis Questions...This is key in your business plan and your business...If you are not filling a want, there is no need for what you are offering, and you are not bringing it, i.e. creating desire......You are in trouble and so is your business.
How often do you invest in a company that has a bad/negative history?...(Just watch the stock market for a few months and see how bad news hurts profits.)
Credit + Collateral + Character = Financials .
Credit is based on your ability to pay your bills, loans, and/ or any other contractual obligations.
Collateral is the items of value you spend your money on: What is important to you?
Character is your reputation and your mentality:
What type of person are you?
Do you honor your commitments?
Can the public trust you with their safety?
Can the public trust you with their money?
( Its not just the banks but the investors that are looking for the 3 Big C's). They are looking to find out if you are the real deal or just a taker. Investment has one key element: Return on investment(ROI). Most of the time people that look at business plans already know the information you are presenting.... they want to know if you know and the financials are the very 1st place they look. The basic formula for creating a business is pretty easy to find and follow. The success of a business is a talent that must be developed.
Why is the your personal economy in and out of recession ? (Business fails when people do not buy.)
Industry Analysis: The best product has to make adjustments based on the condition of the consumer economy, the technology, trends, and the regulations in the industry.
How many times have you got suspicious because you don't see foot traffic in a store or restaurant?....(Maybe it is my business background but whenever I'm dining out I always mentally count how many people come in and out of a restaurant.)
Advertising - Customer Service - Promotion:
- Is your business open, accessible, and inviting?
- How are you handling your customers? are they Happy? Satisfied?Recurring?
- Is the word out about your product/service and Are you keeping your word?
One of the wonderful things about our country is the democracy and the capitalism we have.
Democratically: we are free to consume what we want. ( with laws...of course)
Capitalistically: we can also chose where and when we consume (market)
These are all valid questions that we value when strangers want to know but get defensive about when friends and family ask. In one way or another you have to ask yourself (and answer) these questions and a few more before you throw $$$ behind a good idea. Sometimes you have to be really honest with yourself and find out how to solve your own problems. Once you get past these beginning little hurdles then you can start cooking with gas....( I live in the South now ...so I have picked up a few sayings...)
I will be the first to admit I have had some crazy ideas in the past without planning. I have started and failed at more things than I am comfortable admitting to (right now), and I REALLY do not handle criticism with the greatest of ease. Most businesses do fail in the first few years of opening and I am not really happy with the level of service I can provide at this stage (beginning).
I have a big problem with disloyalty....especially with those I allow to stay in my circle. I have been more than quick to write people off and be judgemental, and patience is one of those virtues I was not born with.
Why is this important?
I heard Oprah Winfrey say recently, on her show that:
" Success is about attitude"
This sounds a little too simplistic but the wisdom in those words is very true. I read in the Bible somewhere ( I think Proverbs) that wisdom comes from understanding. Well I'm starting to understand what my success is about.
Its about my attitude during the down times, the disloyal times, the failing times, the times you need uplifting and support, the critical times, the frightening times, and the blessed times that determines my success. I will be a better success when I see myself as the success I want to be, value the success that I am, and appreciate all the success I have along the way. Thats my truth...
No comments:
Post a Comment