Remember that the purpose of the Quick-Start Business Plan is to determine whether or not a particular business idea has the potential to become a viable business. So there are two more business plan questions that you have to ask yourself:
4. What are the obstacles to my business plan and are they surmountable?
Sometimes you have a business idea that seems sure-fire. You know there’s a market for it, you know you’ve got the edge on the competition and you know it will be a money maker – but there are showstopper problems that you just can’t get around.
You might, for instance, want to start a limo service, only to discover that you can’t get the licensing you need. Or want to improve an existing resort only to find that the necessary zoning change is impossible. Or want to start a home-based business in your residence only to discover that home-based businesses are forbidden in your neighbourhood.
Take the time to fully investigate all the municipal, provincial and federal bylaws, regulations and laws that will affect your business plan. In some places, you can surmount various obstacles if you know the right people. But it may be that you just can’t do what you want to do where you are. At this point, you have the choice of abandoning your business plan, shelving it until a more favorable climate develops, or finding another more amenable place to do it.
Buying a business: Legal issues (of one kind or another) are a common reason for trying to sell a business. Make sure you do a search to see if there are any outstanding or past court cases involving the business you’re thinking of buying.
5. Do I have what I need to see this through?
Starting a business is gruelling. I can’t say it any plainer. You will probably work more hours than you ever have before and may have to keep doing it for longer than you thought possible – even if you buy an existing business. If you’re not prepared to make the personal commitment your business plan would take, or aren’t physically up to the challenge, shelve your business plan for the moment.
Cash flow is also an issue for many who start businesses. You need to have in hand not only the money to start your business, but the money to support yourself until your business takes off. While some deal with this issue by starting part-time businesses, working while starting a business can really test your endurance.
If money is the only need you’re missing, then it’s just a matter of finding the money you need. 8 Sources of Business Start Up Money tells you where to look.
If you’ve gotten all the way through question five of this quickie business plan, congratulations! You’ve got a viable business idea!
Where to from here? If you envision your business as a part-time venture and it doesn’t take an investment of funds above your comfort level, you might decide to plunge in, start the business, and see how it goes.
If you plan for this business to be a full-time venture or it requires funding, then you should work through a complete business plan. The Business Plan Outline will guide you through the process. The time and effort you spend working through a business plan will greatly increase your chances of starting a successful business.
