Starting and building a small business is challenging and risky. Statistics show more than half of all small businesses fail in the first three years. Writing a business plan is an essential first step for any business start-up to enhance your opportunity for success.
A business plan helps you evaluate the strength of your business concept. Is this business a sustainable business that can create revenue and make a profit? Additionally, a business he plan also serves as kind of a blueprint to help guide you as you build your business by establishing goals and objectives so you can stay on track. A lot of small businesses lose focus in the early years, and as a result they become a failure statistic.
If you are struggling with creating a business plan for your business, here are some common mistakes business owners make and how you can avoid them.
1. Procrastinating. The thought of writing a business plan is overwhelming and can be intimidating. As such, business owners put if off and it never gets done. My best advice. Just do it! Get started and think of it as a process rather than another task to mark off your “to-do” list. You won’t have all the answers at first, but it is the exercise of finding the answers that is important.
2. Outsourcing the Plan. As the business owner you are the one who has to deliver the plan results so you need to be intimately involved in the process of writing the plan. If you hire someone to write it for you, it’s just a bunch of paper. It’s okay to work with professionals to advise you, but it’s not a good idea to hand off the project and walk away.
3. Inflating the Opportunity, Entrepreneurs are eternal optimists. Therefore, it is easy to get caught up with our business idea and inflate the opportunity. Naturally, we’d like to think everyone is a potential customer. In reality, that’s never going to be the case. Yet, start-ups get over-zealous and they think they can sell millions when in reality it is more realistic to think in the thousands.
4. Underestimating Start-up Costs It always takes more money than you think. So you really need to do your homework. And don’t forget about your personal income needs when you estimate your costs. Most businesses don’t start off making money so your personal financial needs should be part of your calculations.
5. Overestimating Growth. Rapid, hockey stick growth is not reasonable in today’s economy. Your projections should match reasonable market trends. Plus, it usually takes longer to build a business than you anticipate. If your plan calls for rapid growth you may find yourself struggling to keep the doors open.
6. Too Vague Because pulling together all the information you need to write a good plan is time consuming, a lot of business owners take the easy way out and are too vague. They don’t have the detail they need to support their conclusions.
7. Too Detailed A business plan is not a novel. The more concisely it is written the better.
8. Hung-up On Format. As long as a business plan makes sense, the format you use isn’t critical. Unless perhaps you are dealing with a venture capitalist that requests a certain form, but most small business start-ups don’t go after VC money. A banker once told me the best business plan he’d ever seen was written on the back of a paper grocery bag.
There are excellent resources on the Internet to help you write your business plan. Also, small business development centers are located around the country and they provide counseling and assistance to small businesses. You can find one near you at www.asbdc-us.org.
“When we would wear own designs we’d be asked by strangers on the street where did you get that shirt,” remembers Jeff Vines. “So we did a small run and then signed up to have a booth at some downtown festivals and we always would sell-out quickly. We learned real quick what people wanted.”
Tips to Make the Most of a Media Opportunity
August 14th, 2010A television appearance. A radio interview. A magazine article or a mention in a popular blog. Every business owner understands the value of positive media coverage. There’s no better way to build your brand. Media coverage is significantly more credible than paid advertising because the content is developed by an unbiased, third-party source. That’s why companies spend a lot of time and effort trying to capture the media’s attention.
What would you do if the Today show? Would you be ready? You certainly don’t want to blow your opportunity. A mishandled interview can damage your company’s brand. The key — careful planning and preparation. Even a seasoned professional can make mistakes without preparing properly. So here are some tips that can help you make the most your 15 minutes of fame.
First, never respond to a reporter’s call off-the cuff. When you try to wing it not only do you risk making mistakes, but you also won’t make the most of the opportunity. Find out specifically what the story is about and how it is going to be used. Ask what topics or types of information the reporter is seeking.
Next, find out the reporter’s deadline for the story so you can arrange a convenient time to schedule the interview. This provides you with the opportunity to plan and prepare your key messages. What is it you want the audience to know? Jot down your message points so you can stay in control of the interview.
Practice what you want to say. Rambling, interjecting a lot of “you knows” or stumbling over words makes you look inarticulate and unprofessional. Your mouth has memory so rehearse what you plan to say.
Avoid using slang, industry-specific jargon and acronyms. You want your message to be communicated with clarity. Answer questions in soundbites — in other words be succinct. That’s particularly important for television interviews. Most television segments are only around two minutes in length. Even if the interview is taped, make your answers short and to the point.
Don’t be fooled by a reporter’s pregnant pause. Sometimes when you have finished answering a question the reporter won’t respond immediately. A lot of people who are uncomfortable with long pauses in a conversation feel compelled to continue talking. That’s when you can get yourself into trouble by talking too much. Keep your key messages and when you are finished — stop talking.
Always assume your microphone is on. You’ve probably chuckled at a few blunders public officials have made when they’ve forgotten to pay attention. And nothing is ever ―off the record Off the record means different things to different journalists so if you aren’t comfortable sharing the information, don’t
Finally, “no comment” is never a good response in an interview. It is best to either answer the question or explain why you can’t. If you don’t know the answer to a question, admit it, and if possible, offer to help the reporter find the information she needs.
Media coverage can give you business a big boost, so plan and prepare to make the most out of your 15 minutes of fame.
Coming up in “It’s Your Biz with Susan Solovic” get media tips from expert Tripp Frohlichstein
Tags: blog, business owner, It's Your Biz, magazine, media coverage, Media Masters, NBC, newspaper article, no comment, radio, reporter, small business, susan solovic, Today show, Tripp Frohlichstein
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