12 | HOW TO WRITE A BUSINESS PLAN
Introduction ..........................................................................................................................................
“Hope springs eternal in the human
breast,” said English poet and essayist
Alexander Pope several centuries ago.
He wasn’t describing people expanding
or starting a business, but he may as
well have been. Everyone who goes into
business for themselves hopes to meet
or surpass a set of personal goals. While
your particular configuration is sure to
be unique, perhaps you will agree with
some of the ones I have compiled over the
years from talking to hundreds of budding
entrepreneurs.
independence. A search for freedom and
independence is the driving force behind
many businesspeople. Wasn’t it Johnny
Paycheck who wrote the song “Take This
Job and Shove It?”
Personal Fulfillment. For many people,
owning a business is a genuinely fulfilling
experience, one that lifetime employees
never know.
Lifestyle Change. Many people find that
while they can make a good income
working for other people, they are missing
some of life’s precious moments. With the
flexibility of small business ownership, you
can take time to stop and smell the roses.
Respect. Successful small business
owners are respected, both by themselves
and their peers.
Money. You can get rich in a small
business, or at least do very well
financially. Most entrepreneurs don’t get
wealthy, but some do. If money is your
motivator, admit it.
Power. When it is your business, you can
have your employees do it your way. There
is a little Ghengis Khan in us all, so don’t
be surprised if power is one of your goals.
If it is, think about how to use this goal in
a constructive way.
Right Livelihood. From natural foods
to solar power to many types of service
businesses, a great many cause-driven
small businesses have done very well by
doing good.
If owning a small business can help
a person accomplish these goals, it’s
small wonder that so many are started.
Unfortunately, while the potential for great
success exists, so do many risks. Running
a small business may require that you
sacrifice some short-term comforts for
long-term benefits. It is hard, demanding
work that requires a wide variety of skills
few people are born with. But even if you
possess (or more likely acquire) the skills
and determination you need to successfully
run a business, your business will need
one more critical ingredient: Money.
You need money to start your business,
money to keep it running, and money to
make it grow. This is not the same thing
as saying you can guarantee success in
your small business if you begin with
a fat wallet. Now, let me confess to one
major bias here. I believe that most
small business owners and founders are
better off starting small and borrowing,
or otherwise raising, as little money as
possible. Put another way, there is no such
thing as “raising plenty of capital to ensure