The New Year is a time when many people decide that they are bored of working for the same company year after year; they’re tired of working nine-to-five and they’re sick of having to travel miles every day on a busy motorway or packed train.
So, their thoughts start turning to setting up a business of their own. Sounds wonderful, doesn’t it? Be your own boss, work hours that suit you and keep any profit you make, rather than just earning a wage.
But wait a minute – someone running a small business often has to work harder and for longer hours than an employee and if there isn’t any profit, then there’s no wage at the end of the month!
If it works for you, the rewards can be great and the personal satisfaction enormous; so if you’ve got an idea in mind and you’re considering this step then the place to start is by putting together a realistic business plan. This is the document which sets out, in words and figures, all the plans you need to make.
A business plan fulfils three important functions:
(1) It helps you clarify and organise your thoughts
(2) It helps you raise finance
(3) It helps you monitor your business once it has started.
So let’s have a look at each of these in a little more detail:
Organising Your Thoughts
When you are planning a business there are so many different things to consider that it’s easy to become confused. Putting the whole thing in writing can help you clarify your thoughts and assess the whole project more objectively. In addition, you’ll have to answer a lot of questions to complete the plan. This forces you to go out and do the necessary research to find the answers – which in itself is excellent discipline. So many people start up a business without thinking through the pros and cons – and that’s why they fail.
Raising Finance
If you need to apply for a loan, your business plan will demonstrate to the bank or lender that you have carefully considered every aspect of the proposed business, and that you know exactly how much money you need to borrow and what you will require it for. This will help reassure them that their funds will be used wisely. Even if you don’t plan to apply for a loan, your business plan can save you losing all your own money.
Monitoring Your Progress
Your business plan sets down the path along which the business should be moving. When you first start your business there will be a vast number of things to do, and it’s easy to convince yourself that you are doing well simply because you’re busy. The plan will guide you through this period. With it in front of you, you can review how your business is doing at regular intervals. If you are failing to meet your targets, you can then decide on what remedial action to take … and the sooner the better! If you are doing well, you will see more easily those areas where you should concentrate your efforts.
If you are one of the people who is considering going into business then our Start Your Own Business Course will be really useful for you as it looks in depth at the whole subject in addition to giving you detailed instruction on how to prepare a business plan.
On the other hand, if you just need to improve your English and broaden your skill but would still like tuition on putting together a business plan then our Advanced Business English Course would be ideal for you. And, as an added bonus, there’s £25 off if you enrol before 24th January!
Author: Diana Nadin
