Q and A with Denisa - Business Planning & Opportunities :: Certified Financial Planner : Colorado Springs, CO

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Q and A with Denisa - Business Planning & Opportunities

10. Business Planning and Opportunities

From:Sarah

I am a business owner but I feel like my business has been stagnant for a while, and I need to re-focus to take it to the next level. I have always procrastinated on writing a business plan because it feels like a cumbersome project. Is there an easy way to write a business plan, and what should it cover?

ANSWER:

Sarah, Planning is critical to taking your business to the next level. Whether you're a start up business or an established enterprise, a solid business plan can help you become more successful. To get started:

SET A DATE
Decide on a completion date and ask your friends or family to hold you accountable.
CRAFT YOUR MISSION STATEMENT
Your mission statement is a blue print that should clearly spell out your purpose and values. It should cover measurable criteria such as ethical position of your business, your target market and the kind of public image you want to project.
SET YOUR GOALS
a. They should be specific and measurable
b. Short-term goals should tie back to long term goals
c. Keep your objectives realistic but don't let your fear hold you back from aiming high
WRITE YOUR MARKETING PLAN
a. Identify your target market
b. Address how you will:
    i. Deal with competition
    ii. Price and promote your services or products
    iii. Provide stealth customer service
MAP OUT YOUR DAILY TASKS
What will it take each day to meet your goals.
TREAT IT AS A LIVE DOCUMENT
Keep the plan up to date and incorporate incentives to reward yourself and your employees when you reach your goals.

Each time you visit your favorite online site, you may have notice a flashing add for money-making opportunity. Like "stay-at-home mom earns $50/hr" or other ads promising that you will make money stuffing envelopes, or doing a medical billing, and reading books. So, what’s the deal here?

Here are some tips to find out if these are legitimate business opportunities.

Explore the website and look for a logo of respectable entity like the Better Business Bureau. Then click on the logo and you should see additional information about the site.
See if they provide contact information, such as a physical address.
If the ad promises that you will make ton of money working from your home and with no experience, it should raise a red flag. Check them out on the Internet to see what others have to say.

Fraudsters will sometimes email you a so-called investment newsletter touting a certain stock or trying to convince you to invest in a small, unknown company. You can verify this by checking them out with the Securities Exchange Commission at SEC.gov.

Don’t let anyone tell you that you need to decide immediately. Take your time and do your due diligence.

Many people who were laid off are reinventing their careers, like starting a home-based business. Being your own boss can be an exciting thought but operating a business also carries a huge responsibility.

I want to cover two important aspects of running a business: 1) how to keep your business alive and 2) how to safely deduct home-based business expenses.

It takes most businesses about two years before they make just enough money to cover their overhead. One of the key reasons why businesses fail is because they are undercapitalized, meaning there is not enough money to sustain its operation.

That is why you need to start with a budget to see how long your savings can carry you personally and your business. You will have to cover expenses like health insurance, business insurance, and bookkeeping services, especially if numbers are not your forte.

The second important thing, the IRS has strict rules for claiming deductions for home-based business expenses. They will allow you to write off a portion of your utility bill or a mortgage, but only if you are using that space in your home exclusively for business. This can be a really tricky area, so before you get your home based business going, be sure to do your homework.