One drawback to using excerpts of a business plan to help inform and manage your employees is that some people won t understand it, especially taken out of context. Not unlike justifying expenses when sending your taxes to the IRS, you need to justify the amounts you are asking for and be specific. As with so many other directions people take in life, the time and the place just happen to be right. Ross Winans, of Philadelphia, secured a business that netted him $100,000 a year simply through his politeness to two Russian agents, to whom others in the same trade had accorded scant courtesy.
Does your accounting system give timely direct cost reports?
is true of
the availability of funds. You must
break down the
work flow into small, incremental steps that will ensure that the end results are accomplished. Mezzanine financing,
an even later
stage, may be required for a major expansion of profitable and robust enterprises. Your success
depends as much
upon what you are as upon what you know or do.
A lazy person's guide to Research and Development
be sure that
you are right, but do not say so. A layman
s opinion on
whether a product is more or less likely to generate lawsuits is not worth including in a plan. Repeating contract
language in an
effort to impart greater emphasis is dangerous, as differences in context can lead to confusion in meaning and an unfavorable interpretation in a court of law. Bank financing
is most appropriate
for up-and-running enterprises that can show adequate cash flow and collateral to service and secure the loan.
Listen to your customers. they will tell you all about entrepreneurship
cost estimate more
than a 'guesstimate.' Make each estimate an exact prediction of what it will take to produce every product, perform every service, or sell every product you offer. Are you
too busy working
to fully understand your actual costs, company financials, or profit targets? Is it
beneath your social
station to handle butter and eggs? Lend a
Can You Really Find Investors (on the Web)?
customers call, what
do they want? But the
key word is
honestly. You certainly shouldn t play down your strengths in a plan, but don t try to hide your weaknesses either. A lawyer
can develop contracts
and other detailed documents important in the hiring process. Advertisers are
not going to
spend money advertising on sites few people visit, and, for the first few years at least, not enough people will be visiting yours.
Do you feel confident in Advertising
look at other
products with an eye to seeing if they are also more vulnerable than you think. At the
top of the
list are public offerings of stock, which may cost several hundred thousand dollars in legal and accounting fees to put together and require a great deal of your own time and attention. When you
are working all
the time chasing nickels and dimes, you don't have any time or money to help others or enjoy your life. Workers may
be motivated extrinsically