Info of Finding Employees

Fortunately, there are a number of services and methods available that can make an employee search much simpler.

Of course, one of the most popular methods for recruiting employees is to use the traditional help wanted poster and classified listing. It should be noted; however that this method really only works well if you have a traditional storefront with a brick and mortar building. In addition, you should be aware that with this type of employee search you are generally only going to receive the most general and traditional recruits. While this is a reliable, and free, method for finding employees; you are much more likely to attract applicants who are unqualified and who may have questionable work ethics.

Public services can make the process of finding good employees a little easier without spending any money doing it. This is because each state has an employment service office that can help you with your employee search. These offices are often referred to as the ‘unemployment office’; a nickname most states would like to do away with. In reality, these offices are affiliated with the United States Employment Service and Department of Labor. They can help you with everything from screening applicants with aptitude tests to actually receiving resumes and applications for you so that you don’t have to interrupt your daily business operations with the inundations. Best of all-these services are completely free.

If you want to step up your efforts in finding the right employee, you might consider a fee based search. Employment and recruitment agencies handle screening, background checks and aptitude tests in order to help you in finding good employees. They can also provide advise to you on how to recruit employees. Be aware, though; this service will cost you.
Temporary personnel services are also a solution that may be able to help you in finding employees. This type of services normally works better if you are experiencing a temporary labor shortage rather than a permanent staff person; however. The big benefit to using a temporary personnel service is that they will generally handle multiple tasks such as payroll, tax deductions, fringe and other costs associated with an employee.
So, once you have decided how you are going to go about finding employee; do you know how to recruit a new employee? Do you know what to look for in a candidate to know whether they will make a dedicated employee?

Unfortunately, many companies and organizations rush into the hiring decision in an effort to alleviate labor shortage problems without giving any real thought to beyond whether the person has the skills and is available to whether they will make a truly good employee or not.

Many of these problems can be alleviated with a good solid interview and background check. A good interview involves more than asking when a candidate can start to work and whether they have the requisite experience. You need to delve into their motivations and determine whether they will be a good fit for your team. Furthermore, a rushed timeline is no reason not to perform a background check. It may take a little longer but the wealth of information you can uncover regarding a candidate in a background check can save you multiple headaches down the road.

Blind Spots of Strategy Execution

The strategy that is not a strategy

The strategies defined are often reminiscent of amorphous vision à la “to be the most respected and successful company“; goal setting exercises along the lines of “to increase market share by growing faster than the market through introducing new products“; and so called strategic objectives more akin to long to-dos list. Complex power point slides, full of buzz-words describing blue-sky objectives, usually skip over their impracticability or the fact that no one has a clue as to how to get there.

Instead, a strategy should figure out which purposes are worth pursuing and capable of being accomplished – in other words, it should be about choice and focus. To achieve higher performance, leaders must spot the relevant trends, identify the strategic issues that will have the greatest impact on future business performance and define the resulting critical challenges. They then develop a coherent approach to overcome those challenges.

A good strategy thus becomes a bridge between challenge and action. It is short on vision, long on tough-minded analysis, policies and actions identifying the 5 or 6 insightful and actionable things that the business needs to do, to deliver substantially higher performance.

Leadership missing in action

For much of the last 40 years, the focus in business has been on how to create the right strategy, which is seen as the leaders’ responsibility. Most still believe that, once this has been done, it gets executed. They forget to look inside the process and the implementation then becomes a fait accompli as they delegate the implementation responsibility i.e. they take their eyes off the ball. In reality, the hardest part – implementation – is just beginning.

Two companies might have the same strategy but each organisation’s implementation is unique. Senior management must first identify what needs to be done and then lead staff members to adopt and perform the required behaviour and work. In addition, they must keep the process alive: constantly discussing, overseeing and guiding the implementation. Where new focus areas are dictated by a new strategy, they become the champions or faces of change, helping staff (at all levels) understand what the implications are for them, personally.

Seniors of the organisations that successfully implement their strategies often state that they double the effort on implementation compared to what they had spent crafting it. That obviously requires them to free up valuable time and resources, and to avoid being caught in the day-to-day management of the business, potentially losing sight of their goals to implement a strategy and, as such, taking the wrong actions.

Confusing change management with strategy implementation

Change management is a systematic approach to dealing with change (both at an organisational and individual level) but implementation is a specific approach that drives the right actions today to deliver the strategy, tomorrow. As such, change management is a flawed methodology for implementing strategy – if we keep doing the same thing, we will keep failing, and strategy will fail.

While crafting a strategy is about making the right choices – implementation is about taking the right actions and it’s the role of top management to translate the strategy into daily actions. Their biggest blind spot is the failure to recognise that implementing a strategy requires a shift in day-to-day activities throughout the organisation. Very often, little attention is paid to whether staff members are taking the right actions i.e. those that drive the implementation forward. Leaders are responsible for identifying what is no longer important to the business from the old strategy, and what is key to the new strategy – i.e. the actions they do not want staff members to do any more and the ones they want them to do differently or start doing.

Thirty years ago, management was about control and change management was designed as command and control. Now, most business have moved to empowerment and team work. The challenge thus resides in putting new models in practice that might be counter to what the organisation is currently doing and stopping doing what does not work – they must take the right actions. Many leaders use change management out of ignorance, and end up taking the wrong the actions.

Simplicity As a Business Strategy

  • Problem #1 – The Gee Whiz Company sees profits slipping. The call goes out for innovative, creative solutions. Rather than pausing to realign and reaffirm the company’s vision, goals or mission, managers propose more steps, whiplash changes, or faster action.

Solution – Adding something in the name of improvement isn’t always the answer. Remember the KISS axiom, about keeping it simple? Sometimes removing a step, simplifying a process or dialing back the pressure results in greater workflow and greater buy in. Your workforce recognizes and values common sense and revels when they realize that the executive suite values it too.

  • Problem #2 – The Do It Today organization was in a scramble to replace a valuable high level manager that was retiring. The group was stuck in the “How will we ever replace her?” mindset. They were quickly complicating the process by assuming they couldn’t find anyone to match up to the previous employee.

Solution – Instead of overloading the wish list for the new candidate, utilize tools and assessments to identify the skills and attributes of the outgoing manager, then look for those same attributes in potential hires. This helps remove the emotional aspect of the hiring process and streamline and clarify the requirements. Using a tool such as the Attribute Index, the organization was able to identify their top requirements and screen candidates against those. Doing so reduced the time table and identified talent within their network, allowing for a simplified transition.

In the heat of action, it’s not unusual for management to miss the overall picture. If the world’s top 200 companies fall prey to this, chances are you are struggling too.

When you are mired down in complicated processes, it’s difficult to find your way out. Someone outside the trenches can take an impartial look at the overall operation, workflow or process. Talking with employees in an unbiased environment will yield candid and useful input that can set people and processes back in alignment. Asking the question, “What can we subtract?” gives a new perspective when you are locked in the improvement mindset.

Buy a Business in Australia

Important Points when Buying a Business

Every day I receive emails from purchasers and business owners needing assistance in selling or buying. I use my many years of experience in business sales and running a chain of shops to assist them in the right decision for them. It’s a bit like a psychologist really. Its just not a sale for me, it’s a dedication.

The first thing to remember is you must get it right the first time because the business you buy you should be in for at least 4 to 7 years. I advise my vendors and purchasers to give yourself a 4 year plan. You may love the business so much you want to stay longer but the majority of people are burnt out after 4 years and are looking for a change, especially if it’s a café or restaurant, and if you feel it’s wearing you down the business will suffer if you don’t sell then and of course you won’t achieve a good price if the business is run down.

Finding a Business!

I find in my business newspaper advertising brings me very little sales. My statistics tell me a genuine purchaser will go to the search engines to find a broker and scan the listings. We do use the papers to get our website name out there and this works to our advantage far more than a long expensive add that lasts one day. Our site http://www.bestbusinessbuyes.com.au is the most valuable tool we have and our journal Best Business Buys gives you months of good reading to give a purchaser information on how to buy and where. So scan the net under search engines business brokers, if you can not find a business on our site there are other brokers listed that may be of assistance to you. Or better still tell us what you want and we will go find it for you!
Anywhere in Australia.

Problems with Newspaper Adverts

You will often see a private add in the paper and you may think this is great, we will cut out the agent and get the business cheaper.

DON’T BE FOOLED!

Now I am not saying all private adds are no good, some may work out, but in my experience those people who try to do it themselves do it because they have either been burnt by an agent not servicing their business, so they think they will do it alone, or the profit is low in the business and they need a quick sale, or of course the common one the agents fee offends the owner and he thinks he can do it better himself. Or he may think the advertising costs to sell his business is less if he dose it himself.

WRONG!

When you are dealing with a private sale you feel uncomfortable saying what you really think, and uncomfortable asking certain questions so as not to offend the owner. With a broker you can be open and tell us all your concerns. We will work them out with the owner and rectify them if possible. We as the agents should now the business as well as the owners, that’s our job. I look at a business when I list it as my own and sell it as if it was my own. A good broker should be there to help you with that sale to the end. Too many owners who try to sell themselves end up in conflict with their buyers.

And after a few months of failures TRYING to qualify buyers he finds out it’s not that easy & worst of it he has given out his figures all over town for all the clients to see, so the business you are looking at has been exposed to untold people who may be using that information to start down the road.

The poor owner ends up coming to us anyway. Remember if you stay with the broker handling the sale of the business he should be the one to assist you all the way, and if that business does not work out the best for you he most often then not will find you another.

You Have Found the Business you Want to Buy!

The first thing you will need is finance. Are you already cashed up? Or do you need finance. Are you on a redundancy package? These are all the questions your broker should ask before you plunge into a sale.

We are financiers and finance most of the businesses we sell without supplying figures to obtain the loan. Remember the majority of businesses do not always show the true figures of the business but if you look back at the ad backs of that business the business may be a very viable business. Most accountants will reduce the net profits for a business, so the tax implications are not so high for that business. If the adjusted profits are good the business is saleable and your broker will advise you of this at the time. But never, ever buy a business on hearsay of the takings, if its not in BALACK AND WHITE in the accountants formatted profit and loss statement then its not considered saleable. Never buy unseen profits.

Business Finance

For finance to buy the business you will need to complete an application. This way you will know how much you can afford to borrow on the business you are looking at. Not all Brokers are financiers! We are and sell businesses because of it. We use a financier who lends without looking at the figures of the business you are about to buy. But with other institutions such as banks or private lenders you will need the following.

We will arrange finance for you without an up front fee. Most finance brokers charge a fee of between $3,000 &$ 6,000 to get you your finance. We at Arwon Realty do this FREE because we are paid on settlement to sell the business by our vendors (owners). It is in our best interest to get the finance for our buyers so we in turn can get the business sold, and therefore offer a better service to our vendors when listing their business. We finance 90% of all business sold!

Good Business Presentation

  • Plan ahead. Plan potential questions ahead, if you have a standard response prepared for certain questions, when you do find them being fired at you you can respond effectively and congruently. I usually tend to think up a set of standard responses that I can give as an answer to multiple questions. This will save the amount you need to memorize and help you focus on giving a good presentation.
  • Know the format. Understanding the format of the setting you are going to present at will help you give a good presentation. If you understand the layout of the land, where you will be standing in relation to your audience will really help your presentation be good. You should also understand the format of the presentation. Will it be you be giving your business presention as part of someone else meeting or will you be having the entire session to yourself. Will you be introduced to present yourself or will someone else do it for you? Knowing these little tidbits will all help you relax and focus on delivering a quality business presentation.
  • Know your Audience. To ensure you deliver a good presentation you should understand your targeted audience. By understanding your audience you can really establish some deep rapport. If you are speaking to a very refined group you may want to fine tune your business presentation to ensure you use refined tones and gestures. If you are speaking to a group of tradesmen, you would be far better off being blunt and using strong body language to put an emphasis on your business presentation.

If you follow the tips outlined here you will have much better success in delivering a good business presentation. It comes down to eliminating the what-ifs and the other details so you can focus on your content.

Success or Failure

In reality, none of us are failures. It’s true, we will experience times of defeat, setbacks, problems, and adversity, but remember, each one of us is meant to succeed in life, it is our destiny. However, we much choose our destiny. Henry David Thoreau said, Men are born to succeed, not to fail. We can never be forced into having a happy and successful life. Whether or not you experience success or failure is completely controlled by what you think and do. You are the only one who can choose the thoughts that will keep you from achieving the abundant life and joy that you are meant to have. No matter how difficult things may seem, say to yourself, I choose to be a happy and successful person.”

Why do some people get what they want and others fail? I believe that getting what you desire in life takes planning;
it does not just happen by luck. So how do we plan for success?

It has been proven that successful people:

  • Do things differently than unsuccessful people.
  • Recognize the patterns of success and follow them; one of those patterns is planning. They plan what they think and do, which sets them apart.
  • Know exactly what they desire, have an intelligent plan for getting it, and then work their plan. They know what success will cost them in terms of time, energy, and results and they devote the right resources toward making their plans happen.

Therefore, we need to learn how to plan for success.

There have been reports of many people who have won the lottery jackpot, enjoyed luxuries for a short of time, and then eventually gone back to their original level of poverty. Why? I believe its because they didn’t know how to plan for continued success. No one can predictably keep winning the lottery. Those who try to rely on luck for their success lose it all and go back to where they started. Success does not like the gambler or heavy risk-taker.

Be truthful with yourself and admit where you might be coming up short. Once you identify the contrast of what’s not working, you will get clear about what it is you desire. This will trigger a winning attitude that will start you racing toward a life that will surely be as successful as your desire and motivation to make it that way! It will happen!

Exercise:

  • Decide on what you desire and write it down.
  • Determine the amount of time that you want to complete the goal.
  • Identify obstacles that must be overcome in order to achieve the goal.
  • Identify the resources (knowledge, skills, people, money, etc.) you have available.
  • Write out an action plan of the tasks to achieve the goal within the allotted time frame.

Know how to motivate yourself to obtain the success you desire. Learn to overcome the failures.

Build passion by doing what you love to do. Become a proactive thinker rewards will follow!

You only have one life, make it a good one!

Cheryl Vallejos is CEO and President of Endorse Success, where she works with business and personal clients who wish to advance their careers, meet business and personal goals, and start or expand their businesses. Cheryl is a Certified Professional Business Leader, Coach and Consultant. She provides a leadership community for business professionals who want to improve their business success. Cheryl is an author of four books: Injecting The Juice Into Leadership, Low Carb Leadership, Discover the Golden Nuggets of Leadership, Budgeting for Current Times

Cheryl was a medical service director for 108 providers in Arizona where she supervised and worked with hundreds of employees and managers. Her dynamic leadership moved the company forward by increasing profits, developing team peak performance, and acquiring the competitive edge in technology. Cheryl recognizes what is the core of most challenges and she makes that important ‘connection’ with an audience, client or company.

Cheryl has more than 22 years of organizational business management experience where she improved operational development, staff accountability, as well as increased the company’s profits. She was the first female store manager in the state of New Mexico for a large grocery chain–even though she was warned by many that it couldn’t be done.

Managing A Dipping Cash Flow Curve

Ideally, the best policy in improving cash flow is the lethal combination of ratcheting up sales performance and chasing any account receivables that are overdue. But practical situations do not always permit this. Here are some practical tips that will help you arrest that dipping cash flow.

  • If you are banking upon profit projection, a growth in profit need not mean cash on hand. Practically, what you can do to realize larger receivables is to break them up into small and convenient invoices which can be collected rather easily. Even your customers will not feel the pinch like they might as when they have to pay in one installment. This regularizes and helps steady your inward cash flow.
  • You can subdivide some of your monthly payments into weekly payments, if applicable. You can explain your reasoning to your vendors, who might accept the arrangement depending on your relationship with them and your integrity. Additionally, your regular payments will keep their cash flow up, too.
  • Market erosion is the last thing you want right now. This is the lifeline of your business. Identify ways that you could serve your market better. It could be on the supply chain side, which could be eating away the icing on the cake; it could be product relevance or even a quality issue. Act immediately on your findings, beginning with the most pressing issue first.
  • Review your cash flow projections, which could throw some light on where you went wrong. As most payment commitments are based on the cash flow projected, you can make a few corrections to ease things out in the weeks that follow.
  • You can negotiate with your banker or mortgage lender to find out ways to consolidate loans. You can consider refinancing as an option, which will cut down on outward cash flow considerably.
  • Cutting down on waste is a big area. Nonproductive areas of waste such as avoidable telephone calls, piled up inventory, impractical travel costs and extravagant dinners at restaurants can be cut off with immediate positive effect. Over-production and under production should also be seen as areas to be improved upon.
  • Non-performing assets such as under utilized real estate or office space, your equity in a home or office can be definitely convertible into cash without jeopardizing your ownership.

Small Business Survival

You may be in Internet business, traditional business, or you may be a local merchant with 150 employees; whichever, however or whatever–you’ve got to know how to keep your business alive during economic recessions. Anytime the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a “tight ship.”

Some of the things you can and should do include protecting yourself from expenditures made on sudden impulse. We’ve all bought merchandise or services we really didn’t need simply because we were in the mood, or perhaps in response to the flamboyancy of the advertising or the persuasiveness of the salesperson. Then we sort of “wake up” a couple of days later and find that we’ve committed hundreds of dollars of business funds for an item or service that’s not essential to the success of our own business, when really pressing items had been waiting for those dollars.

If you are incorporated, you can eliminate these “impulse purchases” by including in your by-laws a clause that states: “All purchasing decisions over (a certain amount) are contingent upon approval by the board of directors.” This will force you to consider any “impulse purchases” of considerable cost, and may even be a reminder in the case of smaller purchases.

If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads, or even one of your suppliers.

If your business is a sole proprietorship, you don’t have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don’t really need it or can’t afford it.

While you may think you cannot afford it, be sure that you don’t “short-change” yourself on professional services. This would apply especially during a time of emergency. Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you’re skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you.

Particularly when sales are down, you must be “hard-nosed” with people trying to sell you luxuries for your business. When business is booming, you undoubtedly will allow sales people to show you new models of equipment or a new line of supplies; but when your business is down, skip the entertaining frills and concentrate on the basics. Great care must be taken however, to maintain courtesy and allow these sellers to consider you a friend and call back at another time.

Your company’s books should reflect your way of thinking, and whoever maintains them should generate information according to your policies. Thus, you should hire an outside accountant or accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and inventory. Such an audit or survey should focus in depth on any or every item within the financial statement that merits special attention. in this way, you’ll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.

Many small companies set up advisory boards of outside professional people. These are sometimes known as power Circles, and once in place, the business always benefits, especially in times of short operating capital. Such an advisory board or power circle should include an attorney, a certified public accountant, civic club leaders, owners or managers of businesses similar to yours, and retired executives. Setting up such an advisory board of directors is really quite easy, because most people you ask will be honored to serve.

Once your board is set up, you should meet once a month and present material for review. Each meeting should be a discussion of your business problems and an input from your advisors relative to possible solutions. These members of your board od advisors should offer you advice as well as alternatives, and provide you with objectivity. No formal decisions need to be made either at your board meeting, or as a result of them, but you should be able to gain a great deal from the suggestions you hear.

You will find that most of your customers have the money to pay at least some of what they owe you immediately. To keep them current, and the number of accounts receivable in your files to a minimum, you should call them on the phone and ask for some kind of explanation why they’re falling behind. if you develop such a habit as part of your operating procedure, you’ll find your invoices will magically be drawn to the front of their piles of bills to pay. While maintaining a courteous attitude, don’t hesitant, or too much of a “nice guy” when it comes to collecting money.

Something else that’s a very good business practice, but which few business owners do is to methodically build a credit rating with their local banks. Particularly when you have a good cash flow, you should borrow $100 to $1,000 from your banks every 90 days or so. Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month or so before it’s due. By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable.

By all means, join your industry’s local and national trade associations. Most of these organizations have a wealth of information available on everything from details on your competitors to average industry sales figures, new products, services, and trends.

If you are given a membership certificate or wall plaque, you should display these conspicuously on your office wall. Customers like to see such “seals of approval” and feel additional confidence in your business when they see them.

Still another thing often overlooked: If at all possible, you should have your spouse work in the business with you for at least three or four weeks per year. The important thing is that if for any reason you are not available to run the business, your spouse will be familiar with certain people and situations about your business. These people should include your attorney, accountant, any consultants or advisors, creditors and your major suppliers. The long-term advantages of having your spouse work four weeks per year in your business with you will greatly outweigh the short-term inconvenience. Many couples share responsibility and time entirely, which is in most cases even more desirable.

Whenever you can, and as often as you need it, take advantage of whatever free business counseling is available. The Small Business Administration published many excellent booklets, checklist and brochures on quite a large variety of businesses. these publications are available through the U.S.Government printing office. Most local universities, and many private organizations hold seminars at minimal cost, and often without charge. You should also take advantage of the services offered by your bank and local library.

The important thing about running a small business is to know the direction in which you’re heading; to know on a day-to-day basis your progress in that very direction; to be aware of what your competitors are doing and to practice good money management at all times. All this will prepare you to recognize potential problems before they arise.

Formula for Finding Good Businesses to Start

Choose a Topic

Before you can put together a list of good businesses to start you have to know what area it should be in. Many people believe that there are no longer businesses available to start because everyone has thought of everything. I must say that all you have to do is stay up late and watch infomercials. Many of the products may not interest you but it shows that there are plenty of ideas to capitalize on if you think thoroughly.

So how do you choose a topic? I always tell individuals to grab a notebook and spend a week brainstorming what interests them and what they like to do. You could start a business solely because it would be a money-maker but take it from me. When they say “money isn’t everything” they are not lying. I find that if you choose markets that you actually like it makes it a lot more pleasure than work. Again this is only a suggestion and you can choose how you feel but I would recommend choosing something that you interact with anyway like “golfing” for example.

Divide Your List in a Broad Column and Specific Column

As you were writing your list I’m sure some items were specific like “training a dog to sit” and others are broad like “basketball.” You need to divide them and the reason why is because you need those broad terms to be specific. Why you ask? Well, it is because you have to find a way to carve your way into the market. People have already formed some type of venture within the broad topics so you need to break them down because when it comes to business, broad is usually a lot of competition.

Let’s break one down using the example of “basketball.” There are items like basketball, basketball hoops, basketball whistles, basketball jerseys, and basketball shoes. There a things people would like to learn like “how to shoot a basketball,” “how to play basketball,” and “how to play basketball defense.” Take your time with this step because it is the most important. The more you can brainstorm the more ideas you have for good businesses to start. One more thing, don’t be afraid to break down a topic more than once. The topic “basketball” broken down to “how to shoot a basketball” and then broken down to “how to shoot a basketball from the 3 point line” is acceptable. Remember in this step more topics the better.

Determine What is in Demand

To determine this you have to do some research. I find the best way to go about doing this is search items related to your topic and see what is for sale. If someone took the time to advertise it then there must be a market for it. Look at websites and magazines in the niche. Another great place is online stores like Amazon. Their “best seller” section has helped me find a lot of great business ideas because it gives you a look through the eyes of the consumer which is valuable. Make a list of what you see and determine how you could offer it a different way or how you could make your spin on it.

Decide on the Type of Business You Want to Run

The number one rule when finding good businesses to start is determined by your goals. As I mentioned earlier I decided on the internet. My reasons for choosing are; I wanted to spend more time with my family, I needed a business that had plenty of openings I could wiggle into, and I needed a business I could start quite cheap. I advise you to write down the goals you would like to achieve with the business and choose one that will lead you down those paths. If you want to travel then owning a local bar may not be a good idea unless it expands. If you want more time with your family you should not choose a business that would require a lot of traveling like being an independent translator for airlines. If you choose a business that does not meet your goals then you may become miserable even if you are successful.

Now prioritize your goals from the most important to the least important because all goals are not created equal and try to incorporate them all as time passes. One of my goals was to make a lot of money but of course you won’t achieve that instantly. Be patient and it all will come.

Business Realm

Similarly, for a business, creating and implementing a business plan is a major reason of surviving in the competitive market of the 21st Century. However, most entrepreneurs or firms are not properly familiar with why they need a business plan. Let us talk about the importance of a plan, for existing as well as new businesses, today.

Mapping the Future

One of the biggest reasons you need a plan is that it helps you in preparing for the future. You can set goals, develop techniques to achieve and set a mission statement for your business. This helps you to set your business on the right track.

Building the Foundation

A business plan helps in building the foundation of a company. You have a detailed summary of what you need to follow and how you are going to run your business. Once you know the way you want to run a business, the rest becomes quite easy.

Regular Performance Check

Creating a plan can help you in keeping the regular performance of your business in check and changing your operational methods accordingly.

Secure Funding

One of the main reasons why idealistic businesses build a plan is because it is a secure way to protect your funding. You can calculate the previous spending, diving your funds on different tasks and take out an estimate of what you will earn in the future.

There are mainly two types of businesses – one which already exists and a newly established. For a newly started business, the best way to develop a plan is to aim for a one-page business plan.

A robust and detailed plan will just take your attention of the other important things you need to take care of in the initial start-up stage, for example, marketing strategies.

On the other hand, an existing business needs to sketch out how they performed in the past and then build a detailed plan for the future, with a vision to achieve an objective.

The Final Verdict

Having a business plan is one of the most important steps a firm might take, in order to keep a track of the present performance, and sketching out what the company needs to achieve in the future. Business plans can help a firm create a mission statement and then follow it until they stand on a firm foundation and years of experience.

Darren McAllister has many years of hands on business and internet experience and utilizes these different skill to give a fresh outlook to how to become the best you can.