This is the first of a multipart series to provide
key information to ensure that your new
business is successful. We will explore how to
survey and know your market, create a business
plan, obtain financing, as well as develop sound
operating procedures and the ability to execute
your plan.    

Starting a new business is a daunting task, one to be
considered very carefully before proceeding.  One
should never enter any business as an owner unless
one already has experience in it, whether as an
employee, an associate or one who has some other
concrete experience or knowledge in the field. If you
don’t have that experience you consider getting it
before starting a business.

Most people have considerable knowledge about the
business they are about to undertake. However, this
knowledge should be organized and quantified early
on in the process. This will force one to answer the
hard questions to determine if you and your
organization have capability to succeed. This is where
the business plan comes in. Not only is the plan
something that you will need to get financing or credit
for your business, but it will provide insight into the key
issues that will drive action that will lead to success.
And highlight any other resources that may be needed.

The Business plan.

So first, write a one paragraph statement outlining
what the purpose and mission of your business is.
This statement should define in spirit what your
organization is and what it is going to do. Hopefully, it
will be a market-based attainable doctrine of your
mission and one part inspiration.  

For the next steps, each section should be answered
first qualitatively, and then quantitatively.    

A fundamental question to be derived is what your first
year revenue will be. For the first step, the question
that needs to be answered in detail is “What market
are we serving?”. This should be answered generally
at first. For instance, if your basic idea is to sell
aftermarket headlights to auto body shops, than you
may want to define your market as the secondary auto
parts market.  Of course your initial sales estimates
may be limited to one area, but it’s important to
identify the broader market. This may provide insight
into where future growth may come and what the
larger market dynamics are.  

You should then estimate what your sales volume will
be in the first year.  Consider only those resources
you feel certain you will have during the year. No pie in
the sky. If you are the organization then it is a matter of
what you can realistically sell given the resources you
have available right now.  You should also estimate
what your revenue will be for years two and three. It is
here where it may be wiser to assume growth based
on in increased resources based on first year
earnings and /or what financing or investment you are
likely to receive during this period.  

You’ve forecast your volume for the first three years –
now you can make some pricing assumptions to
complete the revenue picture. For the first year it
should be fairly straightforward. You can assume the
current market price and whatever changes are
known to be on the short-term horizon. For years two
and three further analysis is needed to determine
what changes may occur in the market, and what the
effect on prices will be.  Once you’ve made your
pricing assumptions simply multiply by your volume
forecast to come up with your revenue forecast

Of course, we can delve much deeper into what the
underlying factors are in you revenue stream. I’ll leave
to a separate article how analyze the market to form
ideas on different products, and ways alter your
revenue based on what you learn.

The next step we’ll take is to determine what our
direct cost will be to acquire each customer. Or to
make each sale. For each business this cost could
take a different form.  This will be the next article in the

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Small Business: How to Set Up a
Business Plan to Help Your New
Business Succeed.                          
Have Questions? Our consultants are available to help you with
consultation concerning any financial issue facing you. We can
help. Please contact:
Have Questions? Our consultants are available to help you
with any financial question. We can also provide in-depth
consultation concerning any financial issue facing you. We
can help. Please contact:
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Have Questions? Our consultants are available to help
in-depth consultation concerning any financial issue
facing you. We can help. Please contact:

1) We can answer any general financial questions. Our
consultants are available to help you with any
financialissue facing you.
Contact Us.

2) Advice concerning the acquisition of financial
products/ services:
a) mortgage loans: purchase, refinance, 2nd mortgages
b) credit consolidation
c)  other credit: credit cards, auto loans
d)  business loans

3) Financial Management Advisory:
a) creating an investment plan
b) analysis of investment and savings needs
c) setting up budget/financial plan
d) evaluating Investment funds/co’s / financial advisors /

4) Business Advisory:
a) Business Plan creation
b) Financing acquisition
c) Financial Analysis
d) Operations analysis
e) Savings and Investments plans
f)  Investments

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