Building On An Idea, Step By Step
1. Every dream has to start somewhere. What is it that you are actually trying to do, in a nutshell? Can you fit it into a single sentence? For example, aI want to build a business making greeting cards.a 2. Where do you want to end up? Where do you see your idea going in the future? Your final destination impacts the steps you take to get there. 3. What are your reasons for doing this? Is it to benefit yourself or someone else, or is there another purpose, for example, financial independence? 4. With your goal in mind and why youare striving for that goal, consider whether or not this is what you really want to do. If so, you need to figure out how to reach it.
We dont need a business plan here. What we need is a general plan to build the business. 5. What do you need to get the plan accomplished? 6. What are your exit criteria? (How do you know when to call it quits?) And as we invest time and energy into those dreams, we forget that it can fail. Decide when youll step back, or even walk away, before you start. Otherwise, the dream to do more or build bigger will become a nightmare.
7. What is your list of prioritized projects? What are all the things you can do to accomplish the goals outlined in steps 1 through 3? This isnt the action plan this is determining which actions can go into the action plan. In this example, it is determining how to set up a new business.
Option 1: Build my business up in my spare time while continuing to work full time. Pros: Continued income and the knowledge that I can take care of my family. Health benefits continue. Cons: Basically dealing with two full time jobs, the actual full-time job and my business that is intended to be so in the future. No spare time for anyone or anything else.
Option 2: Leave my job, and devote all my time to starting my own business. Pros: With my full attention on the new business, it stands a better chance of success. Also have some free time. Cons: Requires a lot of savings or the new business to start generating revenue quickly. Also means that all benefits are cut off.
Option 3: Buy into a franchise, or buy an already-existing business outright. Pros: The foundation of the business is already laid; presumably there are existing clients who I might be able to keep. It might be possible to pay for the expertise of the current owner while bringing myself up to speed. Cons: Why are they selling the business in the first place? Is it really something I want to get into? If itas a franchise, there are bound to be fees.
8. Now that you have considered the pros and cons of each of your options, you need to select one. Which one has the best risk-rewards ratio for your situation? 9. With a basic plan of action decided upon, you can begin to look more closely at what you need to do at each stage. Make a timeline, and stick to it. You also need to make a realistic budget, considering everything that you will need to start your business. There is advertising, office space, and donat forget that youall need some sort of salary.
Example: Starting a construction business on the side while working full time. 1. A business needs a name and a number; print a set of business cards to hand out. 2. Get some jobsiafriends are good resources for referrals, and so are friends-of-friends. 3. Complete as many of the job offers youave received as possible. 4. Save the money from the completed jobs to be put towards insurance before starting bigger jobs. 5. Get the insurance. 6. Turn the business into a corporation; this can help with taxes and things like setting up retirement funds. 7. As much as possible, continue to work and build the business. 8. When the business is large enough, hire someone to help out part time. 9. Turn the side business into a full-time business, and quit the first job. Well done if you reached this step, but if not you can always go back and try again, now with some firsthand knowledge of possible pitfalls.