Today it is as easy to get a business started, as it is buying a Coke at the 7-11. There are so many opportunities out there; it can drive you crazy and so many look good.
Want to know the interesting part though; it is not the businesses that fail.
-No-
There are vital parts to starting a business that are most often over-looked because people are so excited to just begin “making money” with the visions they got from the brochure or the website and maybe some testimonials where they heard about the millions they are going to make. However, it is the “business plan”, not just their enthusiasm that will make them successful.
So again, it is the lack of a business plan, to lead them to success that will make them fail, but not only that, there is much more.
Interestingly though, within a typical business plan, there is a single component left out that is the number one contributor to failure in business today and it is so simple, you will likely shake your head and go: “man, how did I miss that?”
So, what is the number one reason any business plan will actually be a plan to fail?
Under-capitalization
Yep, that’s right; they run out of money, before they become profitable. Also, they only become profitable if they picked the right business in a growing market that will ultimately provide enough money to attain their goals.
So how do you properly plan to capitalize your business up front and make the money you need to attain all your goals? Here are four principles that will assist you:
