Preparation is everything. Clear and reasonable proposals are more likely to gain support.In this chapter, four things that really matter:You cannot start a business overnight and neither can you expect to gain funding overnight. You need to complete your market research and analysis and have clear strategies for the future. One in five new businesses fail within five years.

There are many reasons for this high rate of failure, but the most common is lack of planning.It is essential that you plan your new business carefully. You must undertake thorough research into the market and be clear on your objectives.

As part of that process you must compile a written business plan. This will set out clearly and succinctly your research, your objectives, and more importantly, your strategy.

 

Is This You?

I don’t need a business plan. I know what I want to do and it’s a waste of time to write it all down. • What’s the point of doing forecasts? Getting out and making sales is more important. • I already have sufficient funds to get started, why should I even consider the expense of borrowing money?

Having A Clear Business Proposal

The very first thing to do is visit your bank and ask them for one of their business startup guides. This will give you advice on the things you need to think about before even starting your business. The most important of these will be to have a clear business proposal.

Essentially this will involve a written business plan. This will contain three basic components:*

 

• ˜ Where you are now — details of your research into the target market.

 

• ˜ Where you want to be — the goals and objectives for your business.

 

• ˜ How you are going to get there — the strategies and resources that you will employ to succeed.

 

Put yourself in the shoes of the funder. Think about the sort of questions that they may have about your business. Make sure that you answer those questions in your business plan. Ask yourself the question — would I lend money to this business based on the information I have before me? Remember, you too are also risking money in this venture. Unless you can be satisfied that you would lend your own money, you are unlikely to gain support from others.

Share your business plan with friends. Ask them what they think. If you have a family, talk through the plan with your partner.

Remember, they too will be involved in your business even if only indirectly and the whole family income could revolve around your new business.

For more detailed information on writing a business plan I suggest you read The Ultimate Business Plan.