Planning Ahead for Your Small Business Opportunity
A Home Business Article Contributed by Sharon Hill
Preparation for a Successful Small Business Opportunity
The opportunity to succeed at a small business endeavor is not just a matter of a good idea and a little luck. It takes a lot of knowledge and a ton of hard work and preparation. Without foresight and wise planning, your small business, no matter how clever the concept, how voluminous the financial backing, will probably not exist past its first year.
Small Business Opportunity Preparatory Documents
The documents you need are market research materials, a business plan, a financial plan, and an advertising budget. Market research comes first. Its the method by which you determine if your small business idea is really an opportunity - a marketable product. While you can get a lot of help from your local small business administration or development center office, you can also do some rudimentary market research yourself.
Marketing magazines, trade journals, chamber of commerce materials and government reports and journals will provide information on the demographics of the area in which you want to pursue your small business opportunity. Then get on the phone and ask local folks what you want to know. Stop them at the supermarket or the mall. Create a web site, offer free white papers and other informational material but ask in return that viewers answer some questions.
Gather as much firsthand information as you can. If you're already in business, ask your current customers, and document their purchase patterns.
There is a lot of guidance available on creating a business plan. Certainly your small business administration and SCORE are your best resources. Your local community or technical college will likely offer a community education course on business plans on a regular basis. The first step in creating a business plan is to organize the process - create an outline.
Once you know what you need to include you write a one or two page executive summary that tells briefly what subsequent pages will reveal in detail. Tell what your company is about, who you are and who your top management is. Detail your product and service - how you will create it, who will help with that process, how you will get it to your customers and how you will market it. Project your revenue and expenses.
A financial plan is not for your firm, but rather for you and your family. If a sole proprietorship your company may depend on your personal finances for its survival - and for yours. You'll want to take a long structured look at your personal assets and funds. Set up a spreadsheet of six categories - assets, liabilities, property and casualty risks such as house, car and personal injury, personal risk such as health and disability, education and retirement.
Subtract your liability expenses from your assets and then determine if you have a positive balance or not. If necessary study ways to cut back on expenses to survive your small business opportunity start-up.
Getting the Word out - Cheaply - about Your Small Business Opportunity
Start your advertising campaign with press releases and other free or low priced advertising outlets. Look for coop advertising - your newspaper advertising rep can help with this. If, for instance, you are an auto parts dealer, you may find that Firestone has a coop arrangement to pay 50-100 percent of the ad cost if you place their logo in your ad. Look for trade outs - your services in return for free advertising, or mention of your company on the partner firm's television commercial.
Advertise in smaller weekly papers or niche publications. Do direct mail campaigns. Walk through your local mall or supermarket parking lot and leave fliers on the cars.
Be creative. Be thorough. Be prepared. You might just be a success.
