Most businesses are established within six months, but those thinking about or avoiding starting a business tend to assume that it takes substantially longer.
A business plan is the most essential element of start-up.
a) Myth
b) Reality
Answer: a - Myth
Although many believe this to be the case, business owners who have been through the process tend to downplay the importance of a business plan in favour of obtaining financing (although a business plan is usually required to apply for financing). The learning process that accompanies the actual construction of a business plan is often considered to be more important than the plan itself. For some, it may prove to be a deterrent to starting a business if they feel that they cannot draft a business plan.
Again, you can, but you'll be out of business in a few weeks. You can only pay yourself what is left after everything else gets paid. You are last in line if you want to make your business work.
"I should be profitable after six months, because I'm an expert at what I do."
a) Myth
b) Reality
Answer: a - Myth
Even though different sources state that most businesses take 2-3 years to make a profit, this is also kind of a myth. Some businesses can make a profit within a few months, and others can take years. It all depends on the business model and the market. That is why a plan is so important to help you understand what you are getting into.
"If I create a website, I'll get traffic" or "I don't need a marketing plan or marketing materials. This product/service sells itself."
a) Myth
b) Reality
Answer: a - Myth
Entrepreneurs should be prepared to spend 80% of their time selling and marketing early on. Nothing sells itself and no website creates its own traffic.
You should assume you'll have some long hours early on. But, if time is important, make sure to build that into your business plans. Plan for slower growth or less ambitious goals if you want to structure time for other things. Also, understand that some businesses just demand more of your time by their very nature. For example, if you want to start a restaurant, plan on having very few days off, long hours and no vacations for a LONG time. Know what you are getting into before you start any business and make sure it fits your financial and lifestyle goals.
The idea processor is a reflective exercise which presents you with questions to think about before deciding whether or not to move forward with your business idea. Please read the questions and think about your answers. Writing your answers down might be beneficial as it will give you something to refer back to and that you can add to at any point.
While this exercise offers you an in-depth look at your business idea, it can't predict the success or the failure of your business. The best thing to do is to speak about your idea with someone who has a lot of business experience. Business coaches are excellent resources to draw from in the idea evaluation stage of business start-up. If you don't have access to a business coach in your area, you might want to consider speaking to a local business person
2. Making Your Way Handbook
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