Is Your Business Plan Reasonable?

If you’ve opened a new business and are concerned your numbers aren’t as good as you’d hoped for, you’re not alone. Perhaps your expenses-to-returns ratio isn’t looking as positive as you’d expected. Maybe your staff has been unreliable or not quite as talented as you’d been led to believe. The role of a small business owner is a tricky one, and you’re probably wearing mutliple hats as you try to figure out what to do next.

You may need to re-evaluate your business plan to determine if you have a practical business set up, or if you’ve been relying on a good idea. A great set up can deliver success; a great idea may need some practical help to convert it into a set up that can work. Use these questions to determine where the holes in your business plan lie: Do have I have at least a year’s experience in this business?

Do I know anyone with experience who can guide me?

Do I have a realistic understanding of the overhead required to run this particular business? Do I have the knowledge required to make this business grow? If the start up costs have been exorbitant, is there a ventural captialist that might want to invest?

Is this business based on a tried and proven idea? Am I sure these advertising and marketing techniques will work in this business vertical?

Have I made it clear to my potential customers exactly what services and products I can provide?

Is there a lot of competition for my same type of small business experience nearby? Have I chosen my location wisely?

Am I competitive pricewise? Have i done the proper analysis regarding my local competition?

Do I have enough money put aside to fund this business (without a large profit margin) for at least a year?

Use these questions to improve upon your business plan.