Some entrepreneurs may disagree with this assessment; however, according to a 2009 MSNBC.com article, “Economic cycles are Darwinian, picking off weak companies and leaving survivors stronger.”
The good news is that the survivors often benefit as their competitors disappear. Unless, that is, you haven’t planned ahead.
Comprehensive Business Plan Vital
You need a comprehensive business plan, including your company’s strategy for success. Flying by the seat of your pants and banking on the belief that your great idea will be all it takes to drive your revenue and growth, isn’t enough.
Instead, consider focusing on these five areas:
- Market share. Identify your ideal target customer. Determine how to market, sell, and distribute your product or services to them. Identify your competition. Sell your differentiation.
- Employees. Hire the smartest people you know to work with you, especially those who have complementary skills to your own. Highlight your own and everyone else’s talents.
- Financing. Overestimate the amount of money you need to open and sustain your business until you have a sufficient cash flow to be profitable. Then study your financing options to find the best for your particular needs.
- Profitability. Make conservative projections on your sales and profitability. While you may hope for overly an optimistic revenue stream, over-predicting sales and income can get you into money trouble fast.
- SWOT. Identify your strengths, weaknesses, opportunities, and threats. Before you invest, be sure of the viability of your product or service. Better to save yourself from failure then to invest in an idea that never had a chance.
Becoming an entrepreneur isn’t just about passion, it takes common sense as well. Sometimes that means knowing when you can do things for yourself, and when you need a helping hand.
Know When to Ask for Assistance
While entrepreneurs are independent by nature, businesses cannot succeed alone. Calling upon others to help can bring you greater success.
In the case of developing your business plan, for instance, the Small Business Administration (SBA) offers help starting and managing a business, including specific details on how to write a business plan.
Additionally, 3rdEagle can find partnering solutions to help your business achieve top line revenue growth. We can mentor and guide you on how to structure, launch, and manage the best strategic alliances to complement your corporate strategy and shorten you sales cycle. Contact us today and let us show you how.