Important Planning Advice for the Entrepreneur Starting a New Business

 

If you’re an entrepreneur and busy planning the opening of a new business we have some important planning advice that will help to make everything smoother or as far as setting up your business and making sure that the unexpected twists and turns (that always come) don’t catch you off guard. The fact is, it’s almost impossible to  prepared for every single problem that might occur or every single opportunity that might come up so it’s best to have plans in place that, while not specific to any one problem or opportunity, will help you to deal with them better quicker and with less loss of revenue or interruption in your timeline. With that in mind let’s get started. Enjoy

 

  1. When you have a few minutes sit down and put together a list (using whatever method you normally use) of all the possible things that could possibly happen before, during and after opening your new business. This can give you crucial information and insight into the possible problems that you may face. Problems like an economy that begins to falter, product lines that drizzle or take off and growth problems that, while a positive sign, are unexpected and interfere with the actual growth. Once your list is done you should have a much better idea of what you need to do, what you need to have in place and possibly even how you will deal with problems when they arise.
  2. One of the reasons for tip #1 is so that you have more information for putting together the eventual budget that your new business will be using. Your list should have given you an idea already that, even if your business is growing and times are good, there will be challenges that need to be managed and having a budget in place to handle them is vital. If your new product suddenly starts selling like crazy and you don’t have the infrastructure to handle the orders that you have the financial ability to put the infrastructure in place quickly you’ll be glad that you took the time to make the budget right when you started.
  3. When the business plan for your new business is finished an excellent idea would be to go back and do two things; reduce the revenues that you have projected by 10% and increase the projected costs by the same. Doing this will give you a 10% cushion, so to speak, that will help you to get by any surprises that your new business throws at you along the way. (And trust us, there will be prizes.)
  4. This might be the most important piece of advice that we have today;  put together a balance sheet with an income statement and a cash flow statement so that you have a complete picture of your assets and liabilities as well as cash flow in out of the business. No matter the type or size of the business that you’re going to be opening it is vital that you know this information. Putting it into a financial framework will make it ‘real’  and help keep you grounded in financial reality,  a good idea when you’re first starting out in business.
  5. If you have a mentor, a trusted friend in the financial industry or access to an unbiased and financially educated opinion, use those people as a sounding board for your business ideas and thoughts. Simply put, the more advice that you receive the more information you will have to work with when it comes to making the hard decisions that all business owners must make.

 

We hope these five bits of advice were worth the few minutes that it took you to read them. Even if one of them helps you to realize your  dream of business ownership will be quite satisfied as well as happy for you. Good luck with all of your entrepreneurial adventures and will see you back here soon.

 

 

 

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