Almost half of all small businesses fail in the first five years, with one in five failing in their very first year in operation. Doing more investigation and planning before launching a business can significantly increase the chance for long-term success.
This lack of planning can sometimes be explained by the fact that many small businesses are passion projects and that doing the nitty-gritty detailed planning necessary for success would often throw a wet blanket on the flame of the business dreams.
Being passionate about your business is extremely important, as there will be many days you will rely on this as the driving force to keep you moving forward when times get difficult and complicated. But with that being said, your passion combined with solid business principles will provide you with your best formula for success.
“If passion drives you, let reason hold the reins” – Benjamin Franklin
Let’s look at three elements you should consider when planning your business. A more detailed business plan would be required if trying to get financing or investors, but this simple framework will provide a quick test of your business ideas.
Who are you?
What do you want to do?
Why do you want to do it?
Who are your Ideal Customers?
What are Trends in your industry?
Who are your Competitors?
Cost of getting started?
How long until you need to make money?
What is the worst-case financial scenario?
Be honest when you answer these questions, dig deep and collect as much data as you can. Then go over them with someone you trust to challenge your assertions (let them poke holes in your plan). This exercise will be a real-world test of your ideas and will give you a real opportunity to adjust upfront where needed.
I truly believe that in almost every case a business can be successful if you are committed, creative, and bold. You can find a way to succeed.– we can help!
Business Consultant and Trainer