February 2023 - Page 8 of 11 - BOLLYWOOD SURKHIYAN

Automobile Business Plan – Four Steps to Success

Like other business plans, the contents of an automobile dealership business plan cover four primary steps towards success. These steps are “opportunity”, “capacity”, “activities”, and “results”.

Opportunity

The industry, customer, and competitive analysis in your business plan proves the opportunity. This should identify that customers in your local market are in need of a dealer of the type you’ve chosen to be because competitors are not fully serving their needs, or because their demographics are changing (more population, richer, poorer, more families, etc.) The opportunity could also be that a certain combination of services by your dealership could improve on what competitors are currently doing. The overall industry situation should look ahead to how the car sales market will be doing six months, one year, or more in the future, when the dealership will actually be open.

Capacity

The experience of the management team, your license as a car dealer, and the financial resources the partners can bring to the table cover the capacity of the entrepreneur to jump on this opportunity. Funders reading the business plan expect that there will also be an element of cash missing from the entrepreneur’s capacity at the moment. Otherwise, they would not be reading the plan in the first place.

Activities

Marketing and operations plans cover the activities the company will engage in to bring in car buyers (and car sellers if you are a used car dealer as well), and run the business as efficiently as possible. As a small car dealer, consider how you can make up for this lack of scale, and the cost savings that come with it for dealer chains, through creativity and hard work.

Results

Finally, the projections of business success and financial section of the plan show the results that you and investors should expect. If results take into account the full costs of the methods you’ve described, and include adequate compensation for staff and key team players, readers will be less likely to question elements on the cost side. If your revenue projections are based on reasonable, researched assumptions about the car buying behavior of your local market, then readers will be more likely to accept this side of the projections as well.

Top 5 Ideas For Starting a Small Business

Are you thinking about starting your own business? Perhaps you’re still employed but would like to start a business on the side. Or maybe you’re a homemaker whose children spend the day in school and you would like to earn some extra dough. Whatever your motivation, your mind must be full of questions about business plans, ideas and startup costs.

There are plenty of decisions you have to make, from broadband plans to business card printing. But for most potential entrepreneurs, the most difficult part of this process is coming up with business ideas. The truth of the matter is many potential business owners never get started because they have trouble coming up with business ideas. If you are lacking that creative spark then this article, which examines 5 ideas for starting a small business may be of some help to you.

If you love cooking then catering is a fun way to combine business with your hobby. Catering can be done on a small scale if you already have a well-equipped kitchen.

Start a consulting business online. Business consulting is one industry that performs well during recessions and if you have the skills and the know-how to help organisations improve their performance, this may be an ideal business for you. The key to success in this business is networking, so pick up the phone and call everyone you know!

Having an online business is the quickest way to the global market from your sofa. But just how do you succeed as a webpreneur? First and foremost, do your research and find out what’s worth chasing and what’s not. By being well informed, you can take educated and calculated risks. You also need to know your market. You will have many competitors so the best way for you to stay ahead is to add value in your service, be it in pricing, quality, quantity or aftercare. A little extra service goes a long way. It pays to learn about search engine optimisation or SEO because this will help you promote your website, which should look fantastic and provide accurate and adequate information. Finally, constantly check the results you are getting and if the business needs to be tweaked, don’t be afraid to do it.

People love working from home and if you have the skills to be a web designer, you can do just that in the comfort of your own home. Although there are many web designers in the market, demand for their services is high and if you market yourself well, you will have a large clientele in no time. One way to get your name out there is to work with complementary businesses. For example, if you’re good at designing brochures, speak to a brochure printing company and come up with a package deal for potential clients.

Are you an avid photographer? With the right equipment this can be a fantastic job for you. Although camera equipment costs a fair bit, you can make a killing at weddings and corporate events.

Catering
Consulting
Webpreneur
Freelance web designer
Photographer

These ideas may or may not work for you so before you start any business, ask yourself these questions,

Is there a demand for your product of service?
How much money do you need to start your business?
How will you differentiate your business from your competition?

Ideas for Financing a New Embroidery Company

Because the area of financing can be confusing, yet crucial to the success of any business endeavor, let’s look at some do’s and don’ts of financing as pertains to the embroidery industry.

The “Do’s and Don’ts”

Do your homework.
Do a market research study for your area.
Do all of the work necessary to create a comprehensive business plan.
Do decide which equipment best serves your needs to complete the business plan.
Do spend about 1,500 hours preparing projections and proposals.
Do contact every financial institution within a 2,000-mile radius.
Do send up offerings to whichever heaven you prefer.
Don’t let the seemingly endless process deter you from your goal of owning your selected equipment.
Don’t take it personally when, after reviewing all of your thoughtfully prepared work, they hand you your hat and coat and boot you through the door.
Don’t take no for an answer!

Welcome to the wonderful world of financing. Once you have decided on the type of embroidery equipment, the direction of your new venture and the location for your shop, then comes the how. The how is the money part.

There are three ways to purchase equipment:

Cash
Finance
Lease

Even if you are in a position to pay cash, sometimes it’s more prudent to hang onto as much cash as possible and finance anyway. This provides more back-up capital for the start-up period. What lenders are really looking for is as much stability as possible in a prospective loan customer.

Here’s another reason to consider holding back some cash: You may need an operating loan a few months down the road, and if everything. you have was already applied toward the machine, there won’t be any cash reserve to reassure the bank.

Unless the financial institution has a lot of experience dealing in the embroidery business, it will know nothing about re-sale values, and will discount your equipment’s worth severely upon consideration for a loan.

So, if you can’t-or choose not to-pay cash, you still have two possibilities: finance or lease. These options also have their own advantages and disadvantages. Let’s start with the advantages of financing. First, you own the equipment (or at least that portion of the equipment that the bank doesn’t own.)

You create an equity interest in the machine and therefore add to the asset column on your balance sheet. With each payment, that equity increases. You also create a liability on the balance sheet, but with each payment the liability decreases. At the end of a three- or four-year period, you own the equipment outright, so 100 percent of its value goes to the asset column. Naturally, there has been some depreciation on the equipment, but it rarely approaches its value at the end of the finance term. In our business, equipment maintains an extremely high value over the years. So do try to own the equipment whenever possible and practical.

Another advantage of financing is that generally you can find lower interest rates from banks and credit unions than from leasing companies. In many cases, leasing companies borrow money from the same lending institutions that you might approach. In order for the leasing company to make money, it adds a percentage to the interest rate of the transaction. Even in cases where the leasing company is so large that it is using its own money, the interest rate is often about the same as that charged by smaller leasing companies. It is possible to shop around for more favorable interest rates on leases if you currently own a business, and have operated it for at least two years. If you have sterling business credit, you may be able to obtain a fairly good rate from a company that does its own funding, rather than one that brokers funds on your behalf.

Some advantages of leasing are lower entry costs, tax benefits (ask your accountant), and the fact that it is sometimes easier to qualify for a lease program than to qualify for conventional financing for such a large amount. The disadvantages are higher interest rates and, sometimes higher payments. Also, at the end of the lease period, you don’t automatically own the equipment. Let’s look at these factors more in-depth.

One of the biggest advantages of leasing is lower entry costs. Whereas a bank is typically looking for a 20% or 30% down payment, a leasing company is usually looking for the first and last payments, and maybe one additional month’s payment as a security deposit.

In some cases, a deal with which a leasing company is not comfortable can be strengthened by an additional capital deposit. For example, what if instead of providing first and last payments, plus an additional month’s payment as security, you offer a security deposit equivalent to six monthly payments? Or maybe one year’s payments? An easy way to provide such a security deposit is to post a certificate of deposit from your bank. If you have such an investment, you can pledge it to the leasing company as security on your lease, and still earn and receive the interest. The leasing company is covered, your security requirement is minimal, and you still receive the interest.

One concern here is that in some cases, when pledging a large amount of money on a lease, the transaction becomes a purchase rather than a lease and may be treated differently from a tax standpoint. The primary reason that you would want the lease to be viewed by the IRS as a true lease, rather than a financed arrangement, is that monthly lease payments are deductible as a business expense. Loan payments are not deductible-only the interest paid each year is deductible. Of course, on an outright purchase, there are different tax benefits, such as investment tax credits. These can be significant, however they must be repaid when the equipment is sold because the sale results in a capital gain. This is a complex area, and each situation is different. Talk with your accountant about which avenue best suits your situation. If you don’t have an accountant, consider consulting one on such major issues as this.

At the end of the lease term, you have the option of turning the equipment back to the leasing company, or paying from $1 to 10 percent of the original cost of the equipment (or its fair market value) to purchase it. Be careful here, because if the purchase residual is too low, the IRS may look at the transaction as a financed arrangement or purchase, rather than as a lease.

Another point to remember is that we are talking about leasing embroidery equipment-not automobiles or farm equipment. Some leasing companies specialize in certain types of business and know the resale value of equipment.

You are going into business with every expectation of succeeding, but the bank or leasing company is looking at it from the viewpoint that if you should fail, it must limit its exposure on the downside. How much can it get for the machines if you can no longer make the payments? A leasing company that doesn’t know embroidery equipment might assess a re-sale value on a machine at 10 cents on the dollar, whereas a company experienced in this business would use a valuation of 50 cents on the dollar.

If your proposed equipment package includes digitizing equipment, you should ask about the prospective leasing company’s policy regarding software. Most leasing companies place a limit on the dollar amount of software value in a deal. This varies widely, but software value is usually limited to between 20 and 50 percent of the total lease package.

No matter what you do, make sure that you are well prepared when you approach a financial institution about a loan for your machine. Be sure you can confidently answer all questions. Those questions will undoubtedly include some of the following: Do you have a business plan? What experience do you have in owning a business? Why do you think your business will be successful?

There must be some sort of general rule in the banking or leasing business that no matter how many documents the customer brings to a first and second meeting, a loan cannot be transacted until the customer has been to the office at least three times! Kidding aside, there is no alternative to being prepared, and it may take a lot of legwork to find the deal that works for you.

Other sources that are emerging in the world of finance are government programs and the economic development council (EDC) programs. Do not overlook these possible sources of machine financing. Small Business Administration loans administered through the banks can be difficult to qualify for, but those who qualify are rewarded with low interest rates and favorable terms.

There are other programs available in some areas from regional or municipal economic development councils that are referred to as Revolving loan Funds. Here’s how they work: The borrower is required to provide from his own funds in the amount of 15 percent of the transaction total. The balance of the deal is split between the EDC and a participating bank. The bank usually loans its half at 2 percent over the prime interest rate, while the EDC provides its funds at 2 percent under prime. Here, you just may have the ultimate deal. Your down payment responsibility is only 15 percent, and you are borrowing at prime. (Donald Trump can’t borrow at prime!) Terms are usually 4 or 5 years and there is no prepayment penalty for early payoff.

Financing your own equipment may not be fun, but it is a necessary part of getting into the embroidery business. Be resourceful, and investigate all of the avenues available before jumping into a deal that might not be right for you. The long-term financial wellbeing of your new business is at stake. Take some time to find a arrangement that works best for you, so that the equipment you eventually buy will be a true pleasure to own.

Keep The Fountain Of Business Idea Flowing

In an age of catastrophic population growth and shrinking job opportunities, why not take a look at putting up your own business? There has never been a better time to be an entrepreneur. No, it is not too late nor it is too early to open for business.

If you choose to try your luck at having your own business, start right by keeping your business idea fountain flowing. The many enterprises you see today, from the ones you see in your neighborhood to the ones you read about in the business section of various broadsheets, are once merely ideas; they are products of one’s fertile imagination and spirit of innovation.

Know Thyself

First things first, to be an effective business owner someday, you must know yourself. Ask yourself if you have even the smallest trickle of the characteristics of a successful entrepreneur. While not everybody can be a businessman, the good thing is everybody can learn the skills of how to be a good businessman.

Do you have foresight? Are you creative or imaginative enough to come up with new ideas and products? Are you courageous enough to face the challenges of running your own enterprise? Can you endure criticism and instead channel your frustrations to churning out more innovative business ideas?

Being an entrepreneur is not easy. And the very first step is to know yourself so that you can adapt your ideas to your personality. Thus, you will be able to upgrade your skills or choose a business that suits your character.

Be In The Loop

You would not want to offer fire proof paints with asbestos! Asbestos has been banned for decades now because it has poisonous side effects. To have great business ideas, you should know a lot about what is happening around you. Read the papers or visit trade fairs; this way, you will be sensitive to what is current and what could be the trend in the future in terms of products and services to offer.

Do Not Reinvent The Wheel

You can not offer baked goodies with holes in the middle and call them bread wheels. What you can do is try to improve or create unique toppings and syrups for your goodies and still call them donuts. Forty years ago, computers are found only in science fiction comic books. But today they are as essential as the cooking stove.

As much as your creativity can take you, come up with ideas of new products and services to offer. Nothing beats being the first in an industry. If not, your ideas should try to add more value to existing products and services. Like the story of cellular phones and cameras; they used to be two different gadgets, but now it is not uncommon to see camera phones.

Force yourself to think of new ideas and concepts. This will keep your idea fountain alive and flowing. Besides, it is always a good business sense to venture into new or improved product lines.

Join The Club

There is no point in having excellent business ideas without having the heart to start your own business. Turning the business switch on is different from just having the famed light bulb flashing inside your head. When you are actually starting and running your business, you get the feel of the industry you are in; more and more business ideas will pour out.

Always be aware and prepare yourself when that light bulb in your head blinks. You might never realize it but you will be at a crossroad between living your dreams and living in mediocrity. Good luck on your venture!

Starting a Startup Business? Choose the Right Business Consulting Firm for Success

Being your own boss is the dream of many and lately, the instinct seems to be taking the world by storm. People are now more inclined to start their own firm, it seems to lure many people and running an own business shows the larger than life picture, however, the reality is a bit different. As an entrepreneur willing to start a new business you need to understand the market, do the need analysis and many researches before executing your plan. You might be budding with business startup ideas but mere planning will not help you succeed, rather you need a right plan of action to succeed.

The upsurge of small business consulting firms has proven to be a panacea for startups. They offer the consultation and startup mentoring services which work as a guide for entrepreneurs to successfully implement and execute their business plan. Not only it supports the Business Startup Ideas but provides feedback to improve the business plan which helps in removing bottlenecks usually faced by startups.

Why do you need startup mentoring?

There is no denial to the fact that many startups fail in their nascent stage, and they may have a number of reasons for the same, the likes include entrepreneurs being naiveté and lack of supportive startup ecosystem, lack of funds, poor market conditions and much more. But, the most important factor that most of the startups miss is a lack of guidance, inspiration, and feedback from small business consulting firms and no startup mentoring. It might sound absurd to a few strong-headed entrepreneurs to take the support of a mentor to execute their business plan but these firms are a must to make your business successful.

Startup Mentoring – your ultimate supporter and motivator

In the lead to succeed, most of the entrepreneurs break rules or make mistakes which they are not even aware of, these mistakes, however, can adversely affect their business. Also, many times as an aspiring business builder you find yourself stuck in a situation where you don’t know how to proceed. Startup Business Consulting firms and mentors work as a savvy guide who constantly provides you feedback.

Initially, you may be having a lack of confidence but with the mentorship of a good startup mentor, you can move ahead with confidence and without hesitation.

How to find the right startup consulting firm or a startup mentor for your company:

You are entrusting your faith and vision on a person who will be your mentor or support or guide, hence, it is very important that you have a strong relationship with them and at the same time, it’s important that your startup mentor’s or consulting firm’s vision should coincide with yours. A good startup has the following qualities:

An expert-level experience
Already a successful entrepreneur
Are patient and action oriented
A harsh critic yet supportive

Before moving ahead and getting associated with any firm or person, as an entrepreneur you should check for the aforementioned qualities.

What does a good startup mentor do?

A good startup consulting firm or a mentor will:

Listen to your concept and give honest feedback
Will give you time and talk through your areas of difficulties. Since they carry with them good amount of experience, they also share their experience which helps you understand your problems and come up with right solution
They are action oriented and hence, always suggest practical ways on how to start a business by making optimum use of available resources

Takeaways-

You must accept the fact that it takes a village to become a successful entrepreneur, of course, your vision and idea is important but what’s paramount is its right and timely execution which only comes with the right support system. The upsurge of companies like Virgin startup is a move to support and guide the newbies in the business world to succeed and survive.

Ideation – Where Business Ideas Come From

Ideation is the creative process of generating, developing, and communicating new business ideas. When we plan to launch a new business, we either leverage an existing concept or we develop our own unique idea. The same applies to growing an existing business. I have always struggled with determining which is harder – finding the idea or executing on it.

Sometimes ideas are easy enough to conjure, and the hard part is deciding if it’s good enough as the basis for developing a profitable business. If you have what you believe is a “great idea”, the next challenge is to prove or test that it will translate into a successful venture.

Then there are times when a viable idea is the hardest thing to find. It may seem like all the good ideas are taken, and you are left on the sidelines with the resources and desire to start or grow a business but without a great idea. The ideation process can take a day or it can take years, and as with the creative process, it’s usually unproductive to rush it. Aside from the other typical barriers of resources (money and people), the lack of a “good idea” is often what keeps people from taking action on their dream of becoming their own boss.

Creating a new business starts with the idea. The process of developing that idea, and your business concept, may perhaps include some level of testing through prototyping and iteration. During these early phases your idea will undoubtedly evolve and may even morph into something entirely different. There are three basic categories for business ideas, and considering these categories can help with sparking that next great brainchild or validating your existing one:

New – a new invention or business idea. Examples may include the Segway, Virtual Reality and other product inventions. This is the most difficult category for new business ideas. There are very few truly and completely new ideas. By “new” I mean something that absolutely does not currently nor in the past exist in any way. It’s easy to confuse a new idea with what is really an improvement or disruption of an existing or traditional way of doing something. Truly new and unique ideas are hard to come by, so don’t get paralyzed by thinking this is the only source of viable new ideas.

Improvement – this is the proverbial better mouse trap. Examples include exterior-express car washes (where you stay in the car), Virgin Airlines, LED lighting, and Disney Land. Most small businesses probably fall into this category. You take an existing service or product and you make or deliver it in a better way, either directly or indirectly. You may make it of better quality raw materials, for example, or you may add value to the product or service by including additional services or add-ons.

Disruption – a new and revolutionary way of doing something. Examples include Uber, AirBnB, and Amazon. Our modern interconnected world – supported and made possible by the internet – now allows us to completely reinvent, transform and disrupt entire industries. The internet and other technologies are not the only way to execute on a disruptive business idea, but it has certainly accelerated our ability to do so.

Where do great ideas come from? Sources of ideas can include reading, podcasts, art, architecture, personal experiences, travel, conversations, hobbies, borrowing from others, crowd creativity, crowd sourcing, and attempting to solve existing problems in our world. For existing businesses, the best source of ideas is usually your customers. Yet it takes a bit more than just experiencing or reading something to spark your next great idea.

In the article “How to Generate Good Ideas” by Belle Cooper, Steve Jobs is quoted as sharing that creative people are able to “connect experiences they’ve had and synthesize new things.” In his observation, creative people consistently have “had more experiences or they have thought more about their experiences than other people.”

Consciously and objectively experiencing new things will definitely influence and feed your creative abilities, and it’s one of the most productive ways we can continue to develop our ability to generate great ideas.

Does this mean that you have to be creative to generate good business ideas? I believe creativity is certainly one of the main ingredients required for ideation, along with ingenuity and vision. The challenge for many people, however, is that they either have little confidence in their inherent creative abilities or don’t have the courage to express and tap into it. The idea generation process is much like the creative process in that we are putting forth something personal to be judged by others. You must have the courage and confidence to submit ideas that others might think are frivolous or ridiculous. It’s appropriate to remember what George Bernard Shaw wrote: “all great truths begin as blasphemies.”

The ideal process is to identify one or more business ideas, test them, and then continue with developing the idea that has the best possibility for success. Of course, always remember that the true test of an idea’s business viability ultimately rests entirely with the customer. Also remember that if your concept was easy, it would probably have already been done by someone else.

Some questions to ask yourself to help qualify your business idea:

What need does my product or service fill? What problem does it solve
What are the features and benefits of my offering?
What is my competitive advantage? What makes this idea truly unique in my market?
How do my skills and experience fit with my idea?
How will I be able to test and demonstrate it?
What resources will I need to build this idea into a viable business?
Does my idea solve a billion-person problem, or the problem of just a few?
Can I envision myself executing on this concept for the next 5 to 10 years?

How to Get Your Business Funded in 2018

Contrary to popular belief, business plans do not generate business financing. True, there are many kinds of financing options that require a business plan, but nobody invests in a business plan.

Investors need a business plan as a document that communicates ideas and information, but they invest in a company, in a product, and in people.

Small business financing myths:

Venture capital is a growing opportunity for funding businesses. Actually, venture capital financing is very rare. I’ll explain more later, but assume that only a very few high-growth plans with high-power management teams are venture opportunities.

Bank loans are the most likely option for funding a new business. Actually, banks don’t finance business start-ups. I’ll have more on that later, too. Banks aren’t supposed to invest depositors’ money in new businesses.

Business plans sell investors. Actually, they don’t well-written and convincing business plan (and pitch) can sell investors on your business idea, but you’re also going to have convince those investors that you are worth investing in. When it comes to investment, it’s as much about whether you’re the right person to run your business as it is about the viability of your business idea.

I’m not saying you shouldn’t have a business plan. You should. Your business plan is an essential piece of the funding puzzle, explaining exactly how much money you need, and where it’s going to go, and how long it will take you to earn it back. Everyone you talk to is going to expect to see your business plan.

But, depending on what kind of business you have and what your market opportunities are, you should tailor your funding search and your approach. Don’t waste your time looking for the wrong kind of financing.

Where to look for money

The process of looking for money must match the needs of the company. Where you look for money, and how you look for money, depends on your company and the kind of money you need. There is an enormous difference, for example, between a high-growth internet-related company looking for second-round venture funding and a local retail store looking to finance a second location.

In the following sections of this article, I’ll talk more specifically about different types of investment and lending available, to help you get your business funded.

1. Venture capital

The business of venture capital is frequently misunderstood. Many start-up companies resent venture capital companies for failing to invest in new ventures or risky ventures. People talk about venture capitalists as sharks-because of their supposedly predatory business practices, or sheep-because they supposedly think like a flock, all wanting the same kinds of deals.

This is not the case. The venture capital business is just that-a business. The people we call venture capitalists are business people who are charged with investing other people’s money. They have a professional responsibility to reduce risk as much as possible. They should not take more risk than is absolutely necessary to produce the risk/return ratios that the sources of their capital ask of them.

Venture capital shouldn’t be thought of as a source of funding for any but a very few exceptional startup businesses. Venture capital can’t afford to invest in startups unless there is a rare combination of product opportunity, market opportunity, and proven management. A venture capital investment has to have a reasonable chance of producing a tenfold increase in business value within three years. It needs to focus on newer products and markets that can reasonably project increasing sales by huge multiples over a short period of time. It needs to work with proven managers who have dealt with successful start-ups in the past.

If you are a potential venture capital investment, you probably know it already. You have management team members who have been through that already. You can convince yourself and a room full of intelligent people, that your company can grow ten times over in three years.

If you have to ask whether your new company is a possible venture capital opportunity, it probably isn’t. People in new growth industries, multimedia communications, biotechnology, or the far reaches of high-technology products, generally know about venture capital and venture capital opportunities.

If you are looking for names and addresses of venture capitalists, start with the internet.

The names and addresses of venture capitalists are also available in a couple of annual directories:

The Western Association of Venture Capitalists publishes an annual directory. This organization includes most of the California venture capitalists based in Menlo Park, CA, which is the headquarters of an amazing percentage of the nation’s venture capital companies.

Pratt’s Guide to Venture Capital Sources is an annual directory available online or in print format.

2. Sort of venture capital: Angels and others

Venture capital is not the only source of investment for start-up businesses or small businesses. Many companies are financed by smaller investors in what is called “private placement.” For example, in some areas there are groups of potential investors who meet occasionally to hear proposals. There are also wealthy individuals who occasionally invest in new companies. In the lore of business start-ups, groups of investors are often referred to as “doctors and dentists,” and individual investors are often called “angels.” Many entrepreneurs turn to friends and family for investment.

Three Special Business Plan Types

Though it has undergone many changes, the business plan is still around. No longer limited to the traditional 12-15 page type-written document, a business plan can be exciting and engaging as well as useful. Many of us realize that it’s the planning process, and the associated research and soul searching, that is so valuable. The finished plan is just icing on the cake.

Just as there are many types of entrepreneurs and business ideas there are many kinds of business plans. Here are three that deserve some special attention.

The “Accidental Entrepreneur” Plan:

Believe it or not, it happens quite often. An impulse, a hobby, or a passing notion turns into a business without warning. One day you’re handing your extra back-yard tomatoes or homemade cake to the neighbors, and before you know it you’re filling out the forms for a booth at the local farmer’s market. Perhaps you create a unique bit of hand-crafted jewelry and wear it to school or work, and then find your phone flooded with messages like, “Where can I get one?” and “I’ll pay you to make one for me.”

When you’re writing a business plan in a situation like these, you need to address a few issues the intentional entrepreneur has already pondered. The first is do you really want this idea to become a full-blown business? Certainly it’s flattering when you realize there’s a market value for something you were doing anyway, but that doesn’t always mean you should launch a business. A lot of accidental businesses form around fads or seasonal items, and may not be robust enough to function as year-round, money-making, enterprises.

Next you will need to carefully examine what actually goes into your offering. How many hours does it take to create those one-of-a-kind bracelets? How much does it cost to bake a dozen of your special recipe cookies? How much research goes into “whipping up” a website? Making tangible goods requires space. Do you have room to grow enough squash to actually generate profits? Are these numbers you could sustain beyond the occasional personal or family use of your product or service?

The business planning process can be very helpful to “accidental entrepreneurs” as it allows you to decide which ideas are best left as hobbies and which ones could provide some real cash flow.

The “Back of a Napkin” Plan:

It is the source of entrepreneurial legend and lore, the million-dollar idea that was hurriedly scribbled on a bar napkin. Yet, for most potential business owners this option for business planning remains a fantasy. However, like any myth there is a tiny grain of truth inside. A quickie business outline can work as a launch plan under the right circumstances.

If you need to get going quickly to ride the wave of a fad before it fizzles, then fast, bare-bones planning may be all you’ve got time to execute. This works best when you’ve already got the infrastructure in place, perhaps from previous projects or an established business, and you can simply shift energy and resources to the new idea.

When you, and your partners if any, have all the core skills and industry knowledge you need to start right away without seeking experts, napkin notes may be enough to get going. Let’s say you are already an expert in technology and social media. Then you, and your team, probably don’t need a detailed plan to start developing a new app. You will draw on your knowledge and experience, and you understand that you might need to go back and do some more detailed and formal planning later.

Certainly when you reach the point where you are looking for investors or lenders, you will move beyond those first casual notes. Until then, drawing upon your expertise can allow you to quickly jump into the market and perhaps gain a competitive edge by using a minimalist plan.

The “One Pressing Issue” Plan:

Business planning does not stop the day you open for business. Under the best of circumstances you should be revisiting your plan once or twice a year to see how things are going, and where perhaps you’ve veered away from your original goals. Remember, changing the direction of a business isn’t always bad, but it should be intentional.

Then there are the moments when something seems to be going wrong, when one or more areas of the business just don’t seem to be working. Cash flow is anemic or the marketing message is flat. Perhaps customers have shown a marked interest in only one particular product or service, ignoring all your other offerings. This means it’s time to revisit your business plan, more precisely it’s time to revisit the questioning process that helped you craft your plan.

Look at the assumptions you baked into your original plan. Did the city follow through on opening that new park across from your location? Were insurance rates what you expected? How many hours of accounting or web design help did you really need? Are your online inquiries out-stripping your face-to-face sales? Or vice versa?

Sometimes no matter how much you research, plan, or test, things don’t go as expected in a business. This isn’t necessarily a herald of failure or a sign that you’re not cut out for entrepreneurship. Life and the marketplace are both unpredictable, and plans need to be fluid and responsive. The “One Pressing Issue Plan” is simply a reflection of a normal evaluation process.

While I still recommend the business planning process, I caution you to realize that a beautifully crafted document does not always equal business success. I’ve worked with many entrepreneurs who successfully launched without a plan, and some with beautifully written plans that never materialized. You and your business idea are unique. Your planning process will be unique as well. Be wary of one-size-fits-all advice or pronouncements from experts about how you should proceed.

Van Storage Ideas to Start a Mobile Locksmith Business

Starting your own mobile locksmith business is a great opportunity as an entrepreneur, and protecting your inventory and equipment with proper van storage will improve the overall return on your investment as you begin your business.

Outfit your van properly, and you will be more organized, efficient, and committed to your work. It’s frustrating trying to accomplish a task when you have to search around a haphazardly arranged van arrangement to find the right tools or supplies.

You don’t need to buy a brand new van to start your mobile locksmith business; however, it would be a wise investment to spend some time and money on the storage ideas that will help you do your job more efficiently. Some of the higher vans allow you to actually move around inside and sit at a workbench while cutting keys, without the risk of banging your head whenever you need to locate a tool.

Here are three things to consider when selecting van storage systems for your locksmith business.

Plan Van Storage Space for a Workbench

Since you are a mobile locksmith business, plan your storage space with a workbench in mind. Don’t settle for standing outside, at the rear doors of your van. Put yourself inside your mobile office and get yourself out of the weather to do your work in comfort. Take time to measure out your space and find the best location for a workbench and a step stool for comfort. A good mobile workbench allows for six or seven feet of space to spread out and accomplish your tasks.

A full-length workbench can accommodate a key machine as well as file storage and the locking drawers necessary for your keys and other supplies. Maximize the storage space at your workbench by including catalog organizers, hooks, safety equipment and other accessories that will make your job easier.

Van Storage Should Include Locking Drawers

There is nothing more annoying than listening to hundreds of key blanks jangling like loud wind chimes while you are driving down the road. Storing your product in well-cushioned, locking drawers is a wise use of your cargo area. The keys will be protected from “road rash” marks from rubbing against each other or other items.

Locking drawers as part of your storage space will also protect you from flying objects if you need to stop or swerve suddenly. Plus, it looks very professional to have drawers full of your product, categorized and ready to use.

Van Storage is Best Organized with Adequate Shelving

One of the most important storage concepts is to determine your shelving needs. What tools and equipment will you need for your mobile locksmith business? What storage location of these tools will make your work most efficient?

Look at your van as a mobile work cell, and set it up as efficiently as possible. You will accomplish your service calls faster, and will be able to make more service calls throughout the day because your van storage plan has helped you become efficient.

The Challenge of Strategic Planning – Are You Ready?

You may have decided that your company needs a comprehensive, formal strategic plan, but are you really ready for the challenge? Just as important as your willingness to plan is your commitment to expend the resources (time, creative energy and money) required to do it right. Proper planning always involves significant resources for implementation. You and your management team should be committed to following through before you commit any time to the first planning meeting.

A recent article by Kerry Capell at BusinessWeek, How Britain Jumpstarts Design (October 3, 2007), describes the government-sponsored process for helping small to mid-sized businesses re-energize their companies through innovative design. The author relates several different case studies in which a company identifies, with some outside help from Britain’s Design Council, ways to renew its products or make its company brand stand out from the crowd. There have been several brilliant and very profitable success stories from the program.

One interesting thing about the process is that the support of the Design Council is not simply a government giveaway. It is quite competitive to qualify for the program. All company applications to the program are reviewed by a panel of experts. No company is allowed in the program unless they have both the willingness and the ability to invest significant resources in product or process design. In short, the Council does not want to waste its resources helping the business with their design planning activities unless the management team and ownership can demonstrate beforehand that they will be able to follow-through with the good ideas that come out of the process.

This same philosophy should also apply to your thinking when you consider launching your strategic planning process. A comprehensive business planning process is bound to help your team develop many new ideas that will help you change your organization for the better. Implementation of these ideas will require management time and creativity (at the very least) and, in most cases, capital resources as well.

It is relatively easy to kick off strategic planning with the intellectually enjoyable discussions about markets, customers, competitors, capabilities, etc. In most cases, it is fun and exciting to begin the journey to examine your business with the tools of a good strategic planning process. It can be very costly if you are not willing to finish the journey with the resources necessary to achieve your strategic vision.

One of my clients learned this lesson the hard way. After completing the first two phases of Simplified Strategic Planning (Business Analysis and Strategy Formulation), the management team believed that their products and services were game-changing entries in the market. They all agreed that they could potentially triple the size of the business in the next 2 years. It was clear that the chosen business building activities required capital. At the beginning of phase three, Implementation Planning, the fiscally conservative owner announced to the team that he would entertain neither significant debt nor ownership sharing as a means to implementing their action plans. All growth would be self-financed from available cash flow. It was clear to all team members that their aggressive plans for growth would be starved for resources and would take at least twice as long to achieve. This so disheartened the management team that two very talented members left the company within the next six months — a huge loss in executive experience and industry knowledge!

This is just one example of the potential negative impact caused by lack of commitment for strategic planning follow-through. There are many other stories of companies that crafted great strategy and then suffered from inadequate support of their plans. Before initiating your strategic planning efforts, be sure that you have the resources and the determination to implement your great ideas.

Copyright 2007 by Center for Simplified Strategic Planning, Inc., Ann Arbor, Michigan

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