| Ralph Waldo Emerson said, "Build a better | | | | essay on "Why I deserve to get funding for my |
| mousetrap, and the world will beat a path to your | | | | idea" however. Don't spend all the time creating a |
| door." | | | | business plan and then toss it in the bottom |
| But when you're starting your own business, | | | | drawer of your desk. Your business plan should |
| there's no guarantee that your "mousetrap" is | | | | be a living, breathing roadmap that helps you |
| going to survive, especially in today's fast-paced | | | | make sure you're on course and reaching the |
| business world. | | | | goals that you set for your business. |
| Nearly half of all small businesses fail within the | | | | The second step to business survival is getting |
| first two years of operation. The number one | | | | enough financing. Although the term "bootstrap |
| reason for business failure is inadequate planning. | | | | entrepreneur" describes most small business |
| The second reason is under-capitalization. | | | | owners, having enough capital to be able to keep |
| So before you mortgage your house, or go into | | | | your business afloat is vital to your survival. |
| debt financing your business, you need to know if | | | | When you're creating your financial analysis of |
| your business is going to do more than survive -- | | | | your business, make sure you're being realistic |
| you want to know if it's good enough to thrive! | | | | about costs and expenditures, so that you give |
| Here are three things successful businesses that | | | | yourself the cushion you need to succeed. |
| have stayed in business for five years or longer | | | | If finding financing is a problem, either because |
| have in common: | | | | you don't have enough credit or equity, or there |
| 1. The idea. A successful business start-up always | | | | are other problems, take the time to look into the |
| starts with an idea. Something that makes your | | | | resources that are available in your community. |
| business stand out from all the rest. So how do | | | | There are a wide variety of grants and loans |
| you know if you've got a good idea? | | | | (including microloans) for entrepreneurs, if you |
| You've probably got a good idea if you can | | | | know where to look. |
| answer yes to any of the following questions: | | | | Some great resources will be: |
| Does your idea provide the solution to a significant | | | | -The Small Business Administration |
| problem for your target market? Does it satisfy | | | | -Local Small Business Development Centers |
| a need or want? Does it create an opportunity? | | | | -Women's Organizations |
| The most successful businesses either fix | | | | -Local University or Community College |
| problems (either real or perceived), or they | | | | -Chamber of Commerce |
| increase your customer's pleasure. They create a | | | | -SCORE (The Association for Retired Executives) |
| repeat need for a product or service among the | | | | -Nonprofit organizations that work on economic |
| target market. | | | | development in your area |
| 2. The market. Your chances of survival are | | | | Use other successful business models as a guide. |
| better if you can answer the following questions | | | | When you're getting started, look around. What |
| with a yes: Is there already a market for your | | | | businesses are successful? Why? What is it |
| product or service? (It's much easier to fill a need | | | | they're doing that is working? What attributes do |
| than trying to create an entirely new market.) | | | | you admire, and why? You stand a better chance |
| Can your target market afford to buy your | | | | of succeeding if you're modeling someone who is |
| products or services? (If they can't afford it, it | | | | already successful. |
| doesn't matter how great it is, you won't sell any!) | | | | Find a mentor. Most entrepreneurs have great |
| Will your target market perceive your product or | | | | skills and abilities, but no one does everything well. |
| service as valuable? (If they want it, but don't | | | | You probably already know what your strengths |
| think it's worth what you're selling it for, you | | | | and weaknesses are. (If not, there are many |
| won't make any sales.) | | | | resources and tools that can help you figure it |
| 3. Your ability. Do you have the people, the | | | | out!) Rather than ignoring your weaknesses, find a |
| resources and the knowledge to be able to | | | | mentor who can help you either build your skills in |
| consistently provide your products or services to | | | | your weaker areas, or offer advice for getting |
| your target market? Can you maintain a | | | | what you need. |
| competitive advantage? Do you have enough | | | | If you take the time to plan to succeed, you |
| manpower? Can you purchase the supplies and | | | | could be creating a legacy that will be enjoyed by |
| materials you need over the long run? | | | | future generations, and that other entrepreneurs |
| Your first step always is to create a solid | | | | will look at as a model for building their own |
| business plan. Your business plan is more than an | | | | businesses. |