Business Plan Tips 2

Taking in consideration what Mr. Powers and Mr. Nathanson mentioned about business plans, it is important to revise your business plan to make sure it is fully satisfactory to your liking. After reading and watching videos from Mr. Nathanson I realized how important it is to have a good team surrounding you, and to be able to have full communication with your partners and workers. 

I have been known to keep secrets of my own that I believed to be great ideas, but it turns out when you share your ideas you get more insight and opinions regarding the subject. People will be delightfully surprised to find out how much their colleges actually know. Having a truthful and open full relationship with your workers helps establish a comfort zone in the workplace that ultimately leads to better work ethics and happier employees. 

Another common mistake mentioned was the under capitalization of a business during startup. In order to make sure the business runs smoothly in its opening months, capital will be needed in order to keep the company above water. Very rarely do new businesses generate a profit when they first open, in fact most report losses their first quarter, so to have proper capitalization upon opening is essential to survive your first year of business. If personal funding is not enough than money will be sough after from investors. 

The right investor can help make or break your business so it is very important to be honest and represent the business as accurately as possible. Investors rely heavily on the financial of the business plan and are expecting to make a return on their investment. Having proper quarterly income statements can help paint a better picture for the investors, and when they might expect to see some money in return. As long as your numbers are accurate and honest investors can determine if it is worth their time and money to help you open and operate a business. 

Business Plan Tips

Creating a proper business plan, which can be used for guidance, can be the difference between succeeding and failing in the industry. After watching several videos by John Powers, attorney at law, and Dan Nathanson, School of business UCLA, there are several important factors that they mention when creating a business plan.

 First mentioned by John Powers the inadequate capitalization to start a business is usually the most uncalculated part of the business plan. It is crucial to be very accurate and precise to not overlook anything when putting the numbers together on the plan. The most common mistake is to underestimate the cost of operation for the sake of spending less, and making the plan look better financially. This may look good on paper but in realty drives the business into the ground. Since the business plan can be a guide for time to come, starting up your business with wrong numbers is like talking a boat into the ocean with holes in it. The business is bound to sink before it has ever opened.

Dan Nathanson mentions another common mistake made when creating a business plan is to keep to much secrecy. Entrepreneurs think they all have the billion-dollar idea and do not want to share the full extent of their idea. When creating a plan that involve many people, it is crucial to be honest so no detail is overlooked. Keeping important information to secret means it is overlooked in the books and not accounted for in the financials. If the entrepreneur shared the idea, they could not only get the correct financial for it, but get feedback as well. Individuals in the field that have experience can help with the idea and may see areas that have been overlooked before. It’s the small secrets of a corporation that can ultimately lead to the failure of a big business.