Business Planning

What is your purpose for setting up a business?

Is it for a profitably income so you can by a car or other luxury items? Is it to pay money to a charity? 

What type of business do you want?

A freelancer? Ltd? Semi-partnership/Partnership?

What is the nature of the business?

What is it your business will be doing? It must be a legal trade. Think about what you can do, what is feasible? Not just what you want to do.

Where will your business be based?

Where geographically do you want this business to be? Be realistic you won’t be able to open a business in New York (yet). Build skills and trades for the time being and stick to the UK. When thinking about the location of the business do research on your trade in that area, look at other businesses you will be competing with to determine if you will get good business.

These questions will lead to success but if you have no direction, you will drift and be unlikely to succeed. Having the knowledge of where you are gives you the knowledge of where you want to be.

After having the knowledge you can start to develop a plan.

Developing a business plan

Plans should deal with 3 scenarios: The GOOD, the BAD and the UGLY.

• The GOOD is when the plan is going well and the business grows.

• The BAD is when something crops up that can cause the plan to drift and critically damage the business.

• The UGLY is when you have opened the business and nothing happens no work is coming in.

During the planning make two groups of income. Group A will look at the budget of your personal life to live comfortably. Group B will be the income saved to start the business and get it up and running. Keep these two incomes separate to prevent confusion.

The three scenarios the GOOD, the BAD and the UGLY helps you realise when the idea of the business needs to be cut loose because its direction may destroy you finically.