For my MGMT 190 and STS 201 courses, I had to create a business plan with fellow classmates as part of our grade. It gave me a background understanding of how businesses were created. For me, it was a fun project to do. When we had to present to the class, it felt like we were in the Shark Tank t.v. show environment.
An important thing to note in our job industry is that there are close to 28 million small businesses operating in the U.S. However, a more unfortunate fact is that more than 50% of small businesses fail in their first year. The reasons why small businesses tend to fail so easily is explained clearly by the Small Business Administration (SBA) on this page.
Before establishing a start-up, it is great to have a blueprint of how you will manage your business. A business plan identifies the business’s missions and goals and demonstrates its understanding of operating and managing successfully. The plan is an essential roadmap for success if you want to start your own business. Business plans tell potential investors and other audience that the business has a set and stable framework that they will be working with. It also gives the organization a sense of purpose.
The failure rate mentioned above should not stop you from establishing your dream business! Through the use of an effective business plan, it is not impossible to start one. Visit the SBA page. It will help you clear questions in your head and make the entrance into the small business world easier.