By Charif Slag at April 20 2019 08:30:32
Don't Make Assumptions About Customers _ To be an entrepreneur does require plenty of self_confidence, sometimes almost a bloody_minded determination to make your business work. But this confidence spilling over into thinking that you know what 'the market' wants can be dangerous, without checking that it's true. You need to do your research that the market does ultimately want what you will be offering, whatever products or services you will be selling.
So, what would your business look like over the next 10 years to give you that? Could you build a plan that would show exactly how your business could do that? It would show what your sales, fixed expenses, material cost, labor cost, and variable expenses would need to be. It should also show you how many customers you would need and would show you what your profit and profit margins would be each year. All it takes is your current business numbers as we listed earlier and you can make a business plan as many years out as you like.
So, you see, once you decide which of the 7 ways you're going to do, then the only thing left for you to do is figure out how to make the one or ones you have chosen work. No doubt there would be a lot work to do to do a plan like this. You would need to figure out how to put it all together, do all the calculations, do a lot of what if's, etc.. And I'm sure one of the biggest things would be, would you actually take the time to do something like this or even have the time to do it? You could pay someone to do it but that would probably cost you a lot. Plus if you did that, most likely it would require a lot of back and forth work to get it just like you wanted it which would be even more expensive. But even then, would you spend the money to do it?
Summary Section: This section is where you will be able to attach or explain any detail not applicable to the previous sections. This section should be used to provide the financial statements of the Principle's involved in the business and any other data you think an investor would be interested in seeing.