There are many things to consider when starting, purchasing, or expanding a business. This guide is designed to give a brief overview of some of the things to think about and to give you some places to look for help. For this guide, it is assumed that most of the businesses will be start-ups, although it can be used by anyone that owns, wants to expand, or purchase a business.
Do your homework As the saying goes, "if you fail to plan, you plan to fail". Some of the things you need to do, either prior to, or during the preparation of your Business Plan are as follows.
- Do some soul-searching – do you have what it takes to run a business, how do you handle stress, do you want to have employees, how are your management skills, will your family be supportive?
- Research the competition – who are they, what are their strengths and weaknesses.
- Talk to prospective clients or customers.
- Talk to potential suppliers.
- Talk to a business attorney and/or an accountant. They can help you decide what type of entity might be best for your business.
- Understand your market including demand for your services or products, pricing location, economic conditions. Why will anyone buy what you have to sell?
- Have a firm grasp on the skills you bring to the business, what your shortcomings are, and how you will compensate for them.
- Understand your financial strength and tolerance for risk.
- Do you want to start a business from scratch, purchase an existing business, or perhaps purchase a franchise?
- Should you buy or lease buildings or equipment?
- What might go wrong?
Write your Business Plan. The following components should be included in your plan.
- Executive Summary
- Description of the Business
- Management Summary
- Marketing Plan
- Competition Analysis
- Description of the Products/Services
- Operational Plan
- Financial Projections (3 years, 1st year month by month)
- Startup Costs
- Income Statement
- Balance Sheet
- Cash Flow
- Breakeven analysis
- Assumptions
If you need help writing your business plan you can purchase software, contact local non-profit organizations that can help you, or hire a professional business consultant that will work with you to put your ideas and knowledge into a Business Plan. Some places for help are:
- www.bplans.com or www.businessplans.org.
- The Business Assistance Center on the campus of NWTC has a number of non-profit partners that will help prepare your plan or review what you have done. Call 920-496-9010 or go to www.mynewbusiness.org. At this website there are many links to addition help at the resource tab.
- QuickStart, Inc. – Business Plan Consultants – Mike Hall, CPA at 920-884-7685 in Green Bay, Menasha office at 920-730-4060 or www.quickstrt.com.
If you are seeking financing, you will also want to include other items as part of your Business Plan. Such things as Personal Financial Statements, Resumes, Tax Returns, Offers to Purchase, and an Intent to Lease are just a few of the items to include. Anything that will help the reader of your Plan get a better understanding of what you want to do, and what you “bring to the table” should be included.
Some of the items to be answered in your Business Plan include:
- What must I finance to support my needs?
- What amount of financing will meet my needs?
- When and how long will I need these funds?
- How will I generate sufficient cash flow to repay the loan?
Remember, the bank will not finance 100% of your venture. You will have to have something at risk also. The amount the bank will require varies from bank to bank, and can also depend on the type of financing and guarantees available.
Other sources of information:
- www.commerce.wi.gov – In addition to many other useful items, this website contains a business wizard for determining the licensing and regulatory requirements for many different types of businesses. This site includes links to everything from Labor Requirements to a Business Start-up time line.
- www.wenportal.org – Includes many different links and a plethora of useful information, including information about available grants.
- www.sba.gov – Lists information on the various SBA programs.
- www.ci.green-bay.wi.us/- City of Green Bay site. Includes links regarding building inspection, local licensing and permitting. See the "How do I find" tab.
- www.wisconsinangelnetwork.com/ - Includes information on angel investors.
- www.realsmallbusiness.com – A good site for answers to many different questions about small business from entity selection to marketing.
If you are considering a franchise business, a franchise consultant can help determine what type of franchise might be best for you. A couple of franchise consultants that can help are:
- Thedco Consulting, LLC, Hank Edmunds, hank@thedcoconsulting.com or http://www.thedcoconsulting.com/index.htm.
- Alpha Business Connections, LLC, Charles Kleinhans, chuck@alphabusinessconnections.com or www.alphabusinessconnections.com/.
- www.franchise.com – for those that want to research franchises on their own.