January 10, 2012
1. Consider funding options (loans, grants, contributions) to assist with financing
In the planning process you will identify the resource requirements to establish or expand operations. You will identify start up costs, expansion costs, and costs related to operating until a break-even point has been achieved in your business. You should realize that you might not have enough equity (your own money) to do this. Also, it may not be the best option to fully fund this from your equity, even if you have all the cash investment required. In either case you must do some research and find funding sources, which may include a commercial loan, grant, contribution or investor equity. Leveraging sources against sources may reduce financial risk and may result is a better return on equity (return on your cash investment).
2. If you are seriously considering self-employment, be prepared to put in long hours and massive amounts of efforts to be successful.
The more effort you put into your business, the more results and benefits you will experience. This is definitely applicable on the front end, where massive amounts of your energy, time and resources will be required to be successful. Through planning you will be cognisant of where your projected break-even point is, and in some cases you may need to achieve that sooner rather than later. Be prepared to do anything it takes to be successful. Working long days, evenings and weekends will be par for the course.
3. Learn from your mistakes, failures, recover quickly and pro-actively plan for scenarios your business may face.
Successful business managers, leaders and executives have consistently noted that their experience in failures and mistakes gave way to successful ventures and practices. Every major successful corporation or business has gone through ups and downs, and most contribute success from learning and experiencing failures. The abilities to continuously learn and adapt are brilliant leadership qualities.
4. People (staff) may be your most significant resource; engage and empower your staff and treat staff with respect.
The staff that surround you, work with you and support you are your greatest resource. Most of the time, without your valued staff, you don’t or will not have a successful business. In terms of mutual relationships, your business will be successful due to great staff, and in turn, you will empower and encourage team members to be successful. It’s a win-win scenario.
5. Business planning is a core management function. Review plans, goals and results frequently; revise plans accordingly,
Business planning is not a one-time initial exercise, but one of frequent occurrence. Plans, goals and objectives need to be reviewed, analyzed and revised on a frequent basis, in step with your annual business cycles. This may mean that business planning occurs on a quarterly or bi-annual frequency, as your business needs to adapt to the dynamic and changing environments to be successful.
© Strategy Plan One 2002-2012