According to stats from the Office of Advocacy at the US Small Business Administration, 2005, only 44 percent of new small businesses last four years or more. I want to make sure you are in that 44 percent.
If you are just getting started in business, congratulations. Were you laid off like I was from a corporate executive position, and have had to rethink what you will do? Loral Langmeier, in Put More Cash in Your Pocket, advises you to look at your skill set, and develop a business around it. Or do you have a passion around a hobby, or service? Is there a need for what you love to do? Or are you taking on the mantle of a network marketing company, where the buy-in is low, and a lot of the work has been done for you? Once you decide what you want to do, it will help you to be systematic in how you approach it.
My first business was my solo family practice office. When I finished my Family Practice residency training, all I had was my education, a vision, and debt. I had to put together a plan: I wanted to have an office practice, a hospital practice, and a nursing home practice. And I needed to find an office location, borrow money to buy equipment, and hire people to staff the office. I had no business training, but attended a workshop that taught me some of the essentials I needed to schedule patients, collect money, and pay a nurse and a receptionist. I never had to write a formal business plan in order to borrow money, because I could write a signature loan. That is not possible today. But I was seen as a good risk, even without a business background. Through trial and error, the practice prospered, and when I decided to go into academic medicine, I was able to sell the practice to a local hospital.
Today you absolutely need a business plan, even if you are a total neophyte. If you want a business, and not a hobby, you need to think it through on paper. I took a course at the Valley Economic Development Center, after I joined the local Chamber of Commerce, and realized how valuable it would have been to me to do it when I was just getting started. If you need something more structured to help you think through a business plan, look at the Business Plan Template available from the US Small Business Administration. They also have excellent training information on the same site.
Even if you don't think you need a formal business plan, preparing one will help you to review what your goals are, and how you mean to implement them. Write it down to make it happen.
What is your mission statement? In other words, what is the purpose of
your business? What is the vision you have for your business? Who is
your target market? What products and services do you offer? Do you
have the infrastructure (e.g. administrative assistant, family support, cash reserves) to
allow for growth? Do you understand what it will take to make money in your business? Do you have space, time, and social capital to get started?
Through this blog, I will review the essentials of how to set up and run an effective small business. We will go over the whole process from inception to success. The goal is to create a business you love that allows you to achieve your dreams. Whether you are forced out of a JOB, or want to create an income without having to do it on someone else's schedule, I can help you. Your feedback, and suggestions will help me make a better product for readers.
Trust Me, I'm a Doctor.
Dr. Kaaren Douglas
www.kaarendouglas.biz
http://www.facebook.com/DouglasMarketingConcepts
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