Question:
Where do you want your business to be 6 months to
1 year from now?
Do you currently have a business plan and are following it?
A person would certainly never think of building a new house
without first drawing up a detailed blueprint, and then following
the directions to construct it.
Yet, many people start and continue an e-business without the
foggiest notion of where they want to go and how they are going
to get there.
Investor's Business Daily recently ran an article outlining the
key steps to building a strong business. #3 on the list was
developing an operating plan, then sticking to it.
So right now......take 30 minutes and write down where you
expect to be financially with your business in 6 months, in 1 year,
and in 3 years. Then write down how you plan on getting there.
For ages financial planners have touted the benefits of having
a budget for your household expenses. If they think it's so important
for a home, then don't you think it is even more important for
your business?
The plan does not have to be elaborate or highly detailed right
now, you can always add to it later. Simply write something similar
to a home budget. How much do you have for joining or starting
a new business? How much can you afford for advertising costs?
Consider this: if you are not willing to even write down some
sort of business plan, do you reasonably expect to have a thriving
business 3 years from now?
#1 on the IBD list was "Cash Is King." Getting into a lot of debt
without quick profits to justify it, is what spelled death for many of
the crashed Dotcoms.
Many of these businesses had serious cash flow problems, but
because the money was flowing in so rapidly from investors,
they chose to overspend their budgets. When the bottom fell out
and the money tree quit producing, there was no real source of
continuing revenue to meet operating expenses.
Financing a rise on borrowed money is putting your business
into a high risk category. If your business is not making you money,
stop putting money into it!
Re-evaluate the situation, dump it if need be, and go on to
greener pastures. Continually spending money on a project
that is not giving you a sufficient source of income to justify
the costs, will mean you will soon be out of business.
#2 on the list is to evaluate yourself, your situation, and your
strengths. In other words, don't do what everyone else is doing
just for the sake of doing something.
Your business must be something that you really enjoy, are
willing to work hard at, and will reflect your personal strengths
and abilities. Don't put the proverbial square peg into a round hole.
#4 says that relationships are everything. First, you have to
believe in yourself. If you don't believe in you, then friend, don't
expect anyone else to either.
The Internet is a big pond and there are a lot of fish swimming
in it. Some are bottom feeders, some are top. You'll never get
off the bottom if you don't set your sites for the surface and then
believe that you do have what it takes to swim up there.
Being online you are going to need to establish your credibility
and integrity to the e-community. Keep your relationships with the
rest of the netizens clean, healthy, and constantly growing.
Another reason many of these e-businesses failed is because
management didn't address the problems that were apparent
in their companies. As long as the money was coming in, they
thought all would be well. It's easy to ignore problems when
times are good. But, when the business cycle turned, it was
too late.
All businesses have problems of one sort or another.
Ignoring little problems will only mean bigger problems in the
future. When your business runs across a difficulty or problem,
address that issue right now.
Remember what the little bird in one of Dr. Seuss's books
said, "Why make big problems out of little problems."
About the Author
Dave Cole. If you liked this article, why not get your FREE
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