Meet Jerry. For as long as I’ve known Jerry he has been talking about starting his own business. He does a certain kind of technical engineering or something that apparently is not only in high demand, but it’s one of those kind of things where people really care more about the individual doing the work than the company they work for. Jerry is very well respected. He could moonlight on the side for himself by doing the smaller projects that are too little for bigger companies like the one he currently works for.
Over the last six months or so, Jerry has talked about this big event happening where he lives. It’s a national conference and it happens to be in his city this year instead of across the country somewhere. It would be an amazing networking opportunity and one of his best chances to really get his name out there.
He didn’t go.
You see, Jerry has been reading books. Now, I love reading books, and frankly every skill I have these days I developed either from the beginning, or moved to expert level, by studying books. But some people give books too much credit. Jerry is too smart to read something in just one book and consider it the truth, but he did read in several books that before he does anything with his new business he should have a business plan, and he hasn’t written it yet, so he hasn’t made business cards, registered a domain name, or setup a web site. Because of that, he had nothing to network with.
Someday, I’ll write the definitive guide on how to know when to follow what you read, and when to ignore it, but for today, let me instead make sure that what happened to Jerry doesn’t happen to you.
A business plan is a very important document. Frankly, it is a critical component of you business’ long term growth and success. But it is NOT your start up permission. If your new venture involves a large bank loan, venture capital, or even risking your family’s livelihood, then yes, your business plan should come first. The analysis you do there will not only convince others to invest or lend you money, but it will let you know if you are making the right move. On the other hand, if your business does not require a large amount of start up capital and especially if you can do it on the side without quitting whatever it is that currently puts food on your table, then you can write your business plan later. In fact, it might be better if you do. After all, after a few months of running your business, you’ll know a lot more about how things work.
Entering into some sort of lease, spending thousands of dollars renovating space, and spending even more to build an inventory can mean that Day 1 of your new business involves a very big financial commitment. If this describes your new venture, then start with a business plan. Today though, a lot of entrepreneurs are starting up service oriented businesses, many of which can be run out of their home with a minimal outlay of capital. If this is the case for you, then your motto is, “Business plans? We don’t need no stinkin’ business plans.” Instead, register your domain name (today), start building your web site (today), print up plain cheap black and white business cards (today), start networking (today), and then write your business plan (next week).
Jerry still hasn’t started his new business, but he told me about a great new book he got about marketing. I can’t help but wonder if Jerry isn’t afraid to actually start his business. I mean, a marketing book? What can you market if you haven’t started up? Don’t let your business plan be your procrastination excuse. Remember the Law of Inertia from physics class? (Don’t worry, I’ll help you out.)
An object in motion tends to remain in motion unless acted upon by an outside force. An object at rest tends to REMAIN AT REST unless acted upon by an outside force.
That outside force isn’t a new business book, and it isn’t your business plan, it is your passion. Point that passion at your basic cheap startup tasks. Once you get your business rolling, it will keep rolling (remain in motion). One day you’ll look around and think “Where do I go from here?” The answer? Sit down and write your business plan. Until then, go to the damn conference!
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Thanks for this. You was help me. Article who your writen was so important for me. Thanks again
me and my friends have been into venture capital investments and so far the income is great.:;;
Venture Capital is always risky but if market research had been done correctly, you will earn a lot,:`