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FIVE BUSINESS PLAN TIPS

When you write a business plan there are five important things for you to know.
1. When most people write one they are writing it because they want to borrow money or get a grant. They put it on the shelf and never look at it again. That is a big mistake for them-and the people who gave them the money. It should be used weekly from the day the money hits your bank account.
2. The best information is to be gained by going out in the field and observing your future competition. When do their customers arrive and leave,where do they park,what do they buy and how often do they shop? Gathering this information takes hours and cannot be guessed at. There is no substitution for knowing. An outside set of "eyes" are very useful.
3.Running a balance sheet and knowing the relational formulas is like nothing else. There is not a metaphor to explain it. Run senarios and test them. Ask someone who has had P+L responsiblity for over 10 years to go over it with you-several times!
4.The goods and services you buy and sell need to be "drilled up" from the bottom and "drilled down" from the top. You are using real money and the mistakes you make will eat your business alive. Be prepared to change 25% of your "product" on a monthly basis if needed.
5.The biggest mistake is not correctly evaluating risk and including your own shortcomings and inability to repond to change in those risks. Everyone runs out of money but failing to anticipate that and having a "second round" of financing plan in place is why businesses go down or pass into the control of others. Unless you really know how your business has the strength and leadership to get through to a debt free balance sheet you may fail or lose control of it. Every idea has a beginning, a middle and end and a budget. If you don't have the clear ability to describe all four you should hire people who do!
The Successful Business PlanBy Rhonda Adams one of the better books!

TopCat @ CAFECAT.COM


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