If you’re thinking of starting your own business, you’re probably feeling the simultaneous emotions of fear and exhilaration. And you may be feeling just a little bit intimidated; especially if someone wants you to write a business plan.

Business plans aren’t something we write everyday. Accordingly, many people with a start-up idea are at a loss for where to begin. Well, after an interesting chat with Kathy Martin of Sanders-Martin Consulting, it may be that a business plan is not be the best place to start. “It makes more sense to first plan the business right,” she says.

“What you don’t know can hurt you,” says Kathy. “So, to ‘plan the business right,’ start by asking the right questions:

Some of these questions should be —

Is my business part of a growing, healthy industry?
What are typical start-up costs for businesses like mine?
Can I obtain necessary resources to start & grow this business?
What percentage of sales goes to operating costs?
How competitive is the industry?
What uncontrollable factors will impact my costs, sales, and profits?
How much should I pay myself in salary?
What percentage of sales is spent on marketing?

The list goes on.

Kathy believes that “Entrepreneurs get answers, amateurs don’t.” She says “The costs of educating yourself before taking the leap are minimal and the payoff is huge.”

Unfortunately, too many first-time entrepreneurs have fiercely blind faith that their endeavor will succeed. What they don’t realize is that if the indicators show otherwise, moving forward might not be such a good idea. And it’s okay to make adjustments.

“If you don’t like answers you get through research, or you find you don’t have adequate resources necessary to compete, you can rethink your decision or revamp your concept.”

Wise words. The road of entrepreneurialism is littered with the carcasses of great ideas that were great to just one person. A little research by those people would have provided insights needed for making adjustments, which would have created better chances for success.

Sure, you’ll need plan for running the business. But first—I’d recommend people heed the wisdom from Kathy—and plan your business right.

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Filed in Business, Management, Leadership, Workplace