Starting a Small Business
A small business may be easy to put up for some people who have been brought up in a business environment and learned through years of apprenticeship in a family enterprise. Some people put up a business in an industry sector where their family has been in, so they just begin a new one in a separate state or a different location. There are also some people who have learned the ropes, had differences with their family or mentors and go into small business to compete with their old company; hoping to attract the clients of the established market leader with innovative and more technologically-advanced ideas. They usually leave with a prospective clients’ list, a database and ready-made tools.
In some cases, individuals suddenly find themselves with surplus money or cash on hand, so they want to put it into a small business venture, to generate income which should be more than what it will earn as interest from a trust fund or a time deposit account. This second situation is much more difficult because the would-be entrepreneur or businessman have to study many things before he can start his own small business.
The first thing one have to consider when contemplating a new business venture is the feasibility study. Once the feasibility study showed positive results, then the investor may go ahead and draw up his business plan. The feasibility study is the document used to evaluate whether a proposed business venture or project is feasible or not while the business plan contains the steps the new business will go through including the details of what has to be done to start the small business and make it grow. The business plan may be a detailed plan covering every aspect and contingency of going into business, or it can be a small one suitable for a small business venture.
The business plan should start with an executive summary, naming the company, market opportunities, capital required, uses of funds and its breakdown, loans to be acquired and its repayment schedule. It should also include the company mission and vision statement, the names of the officers and managers of the proposed organization, an analysis of the competition, the new company’s advantage over the competition and its financial projections for the next 3-5 years.
A small business plan will start with the Organizational Plan, the Marketing Plan and the Financial Plan. The last part of the Business Plan will include the supporting documents to affirm all the decisions and statements contained in the plan. A businessman should be able to rely on a well-written and realistic business plan to guide him in starting a business.