Starting a small business is often an overwhelming and unpredictable venture, a sure fire approach to improve profitability is developing a solid business plan. Developing a business plan will enable you to effectively execute your financial, marketing, legal, and management strategy. An inadequately developed business plan generally leads to a failing business.
A business plan outlines your business strategy; the industry, business structure, products or services you will provide, and how you plan to make your business a success. Your Marketing Strategy describes and analyzes potential customers: who and where they are, what makes them buy and also describe the competition and how you'll position yourself to beat it.
The most imperative issues a business plan outlines is the acquisition, securing and execution of your financial plan, which is often a complex and frustrating process. The financial section contains your income and cash flow statement, balance sheet and other financial analyses.
One of the first steps when considering starting a small business is research; Small Business Association is the one-stop shop for small business information. A local office is available in every state with resource partners to support the needs of the small business community.
All businesses require some form of financing; some of the financial sources recommended by the SBA (Small Business Association) include the following:
Personal savings: "The primary source of capital for most new businesses comes from savings and other personal resources." (sba.gov)
Disadvantage: Using your personal savings can have it's disadvantages, by using your savings for your start up you may end up without an emergency fund to cover unexpected expenses or situations such as automobile repairs or medical expenses.
Friends and relatives: If they believe in you and your idea, friends and relatives are sometime willing to fund you. "Often, money is loaned...