In the first part of this article we looked at a couple of aspects around creating a business plan. We also talked about how creating your business plan for your small business is not necessarily a difficult matter. It’s more about knowing what could possibly stand in the way and knowing the costs for the basic operations of your business. We made it clear that unless you know the costs for your business it will prove very difficult to receive any kind of investment. We also explained how knowing your market is vital to understanding whether or not you’ll have a business that will make a profit.
In the second and final part of the article we would like to look at something that we call impediments. Impediments are things that get in the way of you creating a business that you want to. You can think about impediments and also manage them better if you have a solid approach to planning ahead. This is all about using foresight and thinking carefully about what may be ahead.
First of all, evaluate the competition in the local area. If they’re offering something that is the same as what you are offering and they are doing very well with plenty of profit, it may be difficult to break-in. You will certainly find it hard if you try and price your current service higher than theirs. If there is a way to bring the same quality or better at a lower price then you have a sound business model.
Regulations need to be understood
Also, make sure that you are clear on the local laws and the business laws about what you're trying to do. If you don't know about the laws and regulations of the business you are trying to run, or the industry that you want to work in, then you can fall foul of these laws very quickly. Knowing what the regulations are means that you are prepared to meet the requirements of those regulations. This means that they won’t get in the way when you want to concentrate on doing business. Instead, you’ll be in control and able to trade without any impediments in this area.
As part of your cost of operations analysis, you should’ve worked out the cost of the equipment, for example, for your business. Too many businesses have fallen by the wayside because people have not worked out what the cost of the equipment would be for the product they are trying to make, or the service they are trying to sell. Work out what the costs are for the equipment and materials, and they won’t get in the way when you are selling.
Basically, planning your business means looking out for any obstacles in the future and just thinking ahead. It also means knowing what the costs are of your business operation, so you can focus on making a profit from your pricing. Get all of this right, and you will have a sound business plan that brings you profit.