The Right StuffAuthor: Gavin Tonks
I have a new client, who wished to develop a business plan, and the first question is “Will you write it for me?” and the immediate answer is “No!”
His crestfallen look deserved answers.
1 - The idea and concept behind a plan for financial request is simple, “If I had a pot of money, and wanted to make some more, by investing
in some one else’s business, what questions and answers would I expect, in order to back this person and their business?”
So imagine if someone was asking you for money, be realistic and put those questions down and then answer them. You being the investor, and wanting security for your hard earned money. It is not as simple as saying, “Just give me the money; I will perform as and when I feel like it.”
2 – The same reasoning is required when asking a company or person for the confidence in you, when investing their orders in your business. How often do you buy something and say, “Would I buy from me?” If I will not buy the product from me then, how do you expect someone else to buy them from you?
So I personally would ask the first question:-
1 - For and Investment - Would I get paid back?
2 - A sales and purchasing contract from the business = would they deliver the service and quality I would expect for this amount of money?
Businesses forget these are the two simple reasons you write anything, and plan your business on.So getting down to basics you need to formulate a series of questions that make it clear in your mind, and then clear in an investors or clients mind, what you are selling and doing and how much will the actions of doing this business cost.
There is no such thing as, “I started a business with nothing.” You need a place to work from, a means of communication and a way of getting to meetings or arranging the business. This all costs money, you may have another source of income but it is a cost of working. People said Facebook started with nothing but try and pay for server power and see how much it costs. There is no such thing as a free business, so plan the costs realistically from day one.
I am a mentor for small business. I have work-shopped over 2 000 entrepreneurs in South Africa for Enablis. I have conducted many seminars and workshops and mentored clients for a large corporate bank. Being an entrepreur myself and having worked on the development side I bring sound experience to the mentorship platform. My articles are published on line, in magazines and newspapers. I was a judge and work shopped contestants in a local reality TV show on entrepreneurs. My 24 hour survival guide for small business is available for free download on smashwords and Docstoc.