When your business develops according to the outlined plan, or perhaps it performs even better than predicted, metaphorically it is a “dream come true”; on the realistic side, it is the reward of your diligence, talent and ingenuity.
We all plan to succeed. It is impossible to predict whether this is or is not accurate. Most of us realize that there is risk involved with the beginning of a developing business. What most people neglect is the risk associated with success. There is the risk on the way up and the risk when you get there.
Synonymous with the word “entrepreneur, is the word risk. Synonymous with the word “money and deep pockets,’ is the word lawsuit. No matter how well planned any beginning venture is, the creator has to proceed on personal emotion, intention and intuition. The objective is to reduce the learning curve and further develop the business by selling more, becoming more efficient and growing into uncharted territories.
Somewhere during the course of this development, a good business owner will realize that he or she is at risk. If the awareness of this risk is not present in the beginning, it generally appears at a point where the owner can reflect on the conclusion that they are actually going to be successful. Until this point, many business people feel that they have had nothing to lose.
Between a slipshod attitude and denial lies a prudent answer to the dilemma. The answer is to plan properly from the beginning. If you are going to be any part of a business, you need to use it to protect your personal assets and you need to protect your personal assets from your business.
How do you do this?
- The process begins with education; your awareness is imperative and your knowledge is a key factor in assisting professionals who are constructing your structure and your asset protection plan in place.
- You need to have professionally qualified advice. No one is saying that you cannot “do it yourself”; we are saying you should not do it by yourself, for yourself. The term professionally qualified advice is used because this advice is specific to a “field.” The field of law, accounting, asset protection, offshore planning, insurance and the like are different fields requiring different education and certifications.
- Plan a structure for success; in the event of unfortunate failure, the same structure will protect you.
- When it comes to your assets, EVALUATE, ANALYIZE, PLAN and PREPARE. It is like the old saying, “Pray for peace, prepare for war.”
More Tips on Business Planning
All the specifics of your business development are unique to your business. What is your mission statement? How fast can the sales or revenue develop? How fast will your clientele develop? How does your strategic plan develop?
There are no laws requiring you have a business plan. Usually your business plan is the initial plan and structure of your business that moves more toward a strategic plan and marketing plan.
Sometimes business starts with a feasibility study. Feasibility studies, sometimes required by investors, (are sometimes independently performed and other times the principles or business owners perform the study) to determine if the business plan is possible as outlined. This study leads you to the preciseness of your mission or mission statement; is it possible to accomplish what you are determined to do?
Business starts with a concept, which leads you to the specifics of development. Specifics that will need to be planned for during the course of your business development are questions like the following.
- How long will it take me to develop the service or product?
- What are the estimated costs to develop the service or product?
- Who is the target market?
- What is the best-case scenario?
- What is the worst-case scenario?
- What is the range of sales for the first year and every year after for five years?
- What is the role of every person in the company?
- How man employees (if any) will I need?
- Do I need to register a trademark, copyright or patent?
- Are there any regulatory approvals necessary?
- What licenses do you need to proceed?
- What insurance do you need?
- Who are the competitors in the business/
- How will the product or service grow to meet industry changes?
- What accounting and tax planning do you need to prepare for?
These are a few answers that you have to answer to plan your development; these are the inside questions that you must answer as the “expert” in your company. Planning the structure and liability of your venture may need the consultation of professionals.
This site will answer many of your questions, but when it comes to the integral infrastructure and operating of the company, we recommend you consult a professional who understands all of the opportunities and dangers that may affect the development of you company. It is also important to have a state-of-the-art Operating Agreement before you begin.