Scott Whelchel, with the Clemson Small Business Center, discussed creating and/or analyzing your current business model. Here are the key principles he shared that we think you need to know.
Write/refine your business plan. Whether you’re a brand new business, or a business in search of direction, formulating a business plan will help you focus your perception of who you are, where you want to go, and how you’re going to get there.
There are certain questions to ask yourself when creating a business:
• Does it support who we are? What is your birthright; what is your reason to exist? Does the world really need another bank, magazine, marketing firm, etc.? What do you have that’s unique and that the community needs?
• Is this business even possible? Is it going to cost you a boat-load of cash to reach your goal? It may be a great idea, but it may not fall into the realm of reality for you.
• Is it profitable? It may be a great idea and affordable, and not ever make you a dime.
• Does it help us achieve long-term goals? Can it build wealth for the family business, build name recognition, or move you father down the line?
Writing a business plan forces you to focus your business’s purpose, narrowing you down from all the things that you could do to the things you should do. It requires critical thought and analysis, asking yourself the tough questions and really challenging yourself. You may think you know what kind of customers you want to sell to or what kind of partners you want to work with, but upon further analysis, you may think differently. You may think you know how you want to reach your customers, but when you research it further you realize that it’s not the most effective tool. Whelchel warns, “If the success of your business hinges upon social media—be careful.” While it may aid your marketing now, it may not help to reach the long-term goals you set for yourself.
A business plan should describe the operation of your business, clarify and outline the financial needs of your business, help you effectively manage your business, and build your confidence and credibility as a business. At some point you have to communicate your vision in writing to others.
Remember, the magic isn’t in the written document itself, but the magic is in the process. Asking yourself the tough questions now will save you the trouble later down the road. Investors and lenders will be able to see that you have carefully thought out the vision of your business, and employees will be more aware of what you expect from them.
Key Tweets from @InsideBlackBox (www.twitter.com/InsideBlackBox):
• Remember: you can’t be all things to all people. Know your position in the marketplace.
• You get farther at the end of the day if you focus on fewer targets in a specific target market.
• Common theme in looking at your biz plan (old or new): Research and Refine. Challenge your ideas and study your (target) market.
• Your momma won’t tell your if your biz plan stinks. Go thru the process; challenge assumptions.
For more Twitter coverage of the speakers at this year’s Greer Community Commerce Convention, hit up search.twitter.com and search #GreerCCC
Join the convo using that same hashtag in your tweets!
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