Business Plan for a New Business

Starting a business is a big step. You have to have a good idea, flesh out all the details needed to put it into operation, and be firmly convinced of your ability to make it work. Having it all worked out in your head is one thing, but for most entrepreneurs, it's only when you take the time to create a written document that embodies your thoughts that you realize the scope and magnitude of what's involved in running a business. In your head, you've concentrated on the idea. In your plan, you can examine the nuts and bolts of running a business to exploit your idea.

Every business that opens has one thing in common. The owner believes that the product or service to be offered is unique in the particular marketplace. No entrepreneur thinks, "I'll open another hot dog stand that is indistinguishable from a hundred others in my town." But there is more to a business than offering a unique product or service. There are also all the unspectacular parts of the business, from keeping the books to paying bills and taxes.

With very limited exceptions, most businesses have a lot going on in the background behind the primary business activity. Just look at the number of service organizations popping up to handle things like health care plans, payroll taxes, billing, and a hundred other tasks that almost every small business owner would otherwise have to do.

Assuming that you've considered the personal impact of starting a business and you're certain you want to proceed, remember one thing. If you work hard to create a business plan and your plan demonstrates that you can't profitably exploit your idea without making some pretty wild assumptions, you haven't lost anything. To the contrary, you've saved yourself the time, money, and heartache you would have expended on a hopeless cause. It is far better to realistically appraise your chance for success before you commit your time and money to a new enterprise. Not every good idea is immediately, if ever, feasible.

Since you're considering a wholly new business, a big part of the planning process is going to involve developing an initial set of assumptions. You'll have to make assumptions regarding costs, labor, the number of potential customers, pricing, and many other factors. You'll learn a lot about your prospective business going through this process. When you do move ahead and implement the plan, you'll be far better equipped than you would have been if you had just jumped in with both feet. Not only will you have a written plan for guidance, you will have started to hone your own planning abilities, providing you with just a little better chance than your less-prepared peers.