Answering 20 Questions Delivers Your Preliminary Business Plan
While it may seem surprising, answering the 20 carefully conceived questions that follow will provide you with an effective preliminary business plan.
As a SCORE volunteer mentor for a number of years, and a contributor to the MarkektingProfs.
com Know How Exchange, I've seen hundreds of instances where average men and women have above average ideas for products or services, yet no idea how - or whether - to turn their ideas into new business ventures.
The questions below don't require a rocket scientist or a finance major, but they will take much of the guesswork out of your decision whether or not to start a business.
The name of the game is to write brief, objective answers to each of the questions.
You'll be amazed at how quickly your responses can create a strong framework for your eventual formal Business Plan.
Let's get started, shall we? 1.
How do you describe the products and/or services your company hopes to sell? 2.
Is it possible to create prototypes of your products or examples of your services? 3.
Who do you expect to buy your products or services? 4.
Where are your potential customers located? 5.
How will you attract their attention? 6.
What problems do your products or services solve for them? 7.
How do you know that? 8.
What types of tools, materials, suppliers or employees will you need to produce your products or provide your services? 9.
Which competitors offer the same or similar products or services? 10.
Are their selling prices higher or lower than what you can profitably sell for? 11.
What additional products or services can you later sell to existing customers? 12.
What will be your Fixed Expenses (rent, utilities, insurance, salaries, taxes, etc.
), assuming your company does not sell even one item? 13.
What will be your Variable Expenses (that's in addition to your Fixed Expenses) to make or deliver one more item of what your company will sell? 14.
What specific types of knowledge, skills and experience will you bring to your company? 15.
What types of outside professional help will your company require during its first year? 16.
Who will manage your company to make sure essentials tasks are done? 17.
Who will do the actual work that will be required? 18.
What will define success for your company? 19.
What next steps are required NOW? 20.
What assets does your company require NOW to move forward? That wasn't bad, was it? Assuming you were thorough and objective with your answers, you've now got an effective tool to help with your decision-making...
and with your formal business plan if you decide to take the next step.
As a SCORE volunteer mentor for a number of years, and a contributor to the MarkektingProfs.
com Know How Exchange, I've seen hundreds of instances where average men and women have above average ideas for products or services, yet no idea how - or whether - to turn their ideas into new business ventures.
The questions below don't require a rocket scientist or a finance major, but they will take much of the guesswork out of your decision whether or not to start a business.
The name of the game is to write brief, objective answers to each of the questions.
You'll be amazed at how quickly your responses can create a strong framework for your eventual formal Business Plan.
Let's get started, shall we? 1.
How do you describe the products and/or services your company hopes to sell? 2.
Is it possible to create prototypes of your products or examples of your services? 3.
Who do you expect to buy your products or services? 4.
Where are your potential customers located? 5.
How will you attract their attention? 6.
What problems do your products or services solve for them? 7.
How do you know that? 8.
What types of tools, materials, suppliers or employees will you need to produce your products or provide your services? 9.
Which competitors offer the same or similar products or services? 10.
Are their selling prices higher or lower than what you can profitably sell for? 11.
What additional products or services can you later sell to existing customers? 12.
What will be your Fixed Expenses (rent, utilities, insurance, salaries, taxes, etc.
), assuming your company does not sell even one item? 13.
What will be your Variable Expenses (that's in addition to your Fixed Expenses) to make or deliver one more item of what your company will sell? 14.
What specific types of knowledge, skills and experience will you bring to your company? 15.
What types of outside professional help will your company require during its first year? 16.
Who will manage your company to make sure essentials tasks are done? 17.
Who will do the actual work that will be required? 18.
What will define success for your company? 19.
What next steps are required NOW? 20.
What assets does your company require NOW to move forward? That wasn't bad, was it? Assuming you were thorough and objective with your answers, you've now got an effective tool to help with your decision-making...
and with your formal business plan if you decide to take the next step.
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