When writing a business plan, there is a previous step that is to do a self-analysis of your real drivers, strengths and assumptions. As a result, you may adjust your plan or decide that running your own business isn’t the dream you thought it could be.
For example, if you consider starting a business a get-rich quick fix, are trying to avoid having a boss, or hate taking risks, you probably don’t need the stress of writing and trying to sell a business plan. It is better that you look for other alternatives. Consider the following principles and how they apply to you as you do your reality check.
- Identify your passion first and list the alternatives to get there
For an inventor, the product is everything, and managing cash flow in a business can be the least satisfying part. Working for an existing, well-funded company, or pursuing your dream as a hobby, can be more fulfilling and productive. You can’t really succeed in life if you’re not happy.
- Evaluate your resources, as well as the sources of financing
You may dream of developing a new silicon chip technology, but a little research should tell you that most disruptive solutions require an investment of billions and more time than you can afford to accept. Maybe you should find a satisfying challenge that is more affordable and less painful.
- Lead from your strengths and interests instead of rumors
There are always people willing to point you to business opportunities, but to think that something is attractive and that it really sea attractive are two different things. Trust your knowledge and if you have to ask others for business ideas, it is better to stay where you are until you are sure of your idea and solution.
- Evaluate if your desired opportunity is new or old
If an opportunity has been around for a long time, it has probably been approached many times, with poor results. Look for new or emerging opportunities in new markets. Time is of the essence in business, so responding quickly with a solution always improves your odds.
- Gauge your ability to outperform your competitors and imitators
In business, there will always be someone with more money, a better location, or more resources, ready to take your idea and squeeze it. You need an intellectual property, such as a patent, trade secret, or process expertise; that will be a barrier that you can defend.
- Evaluate your connections, both in social and financial networks
If you don’t have a social media following, influencer connections, or business advisors, you’re unlikely to get support for a new business plan. More important than a business plan can be networking, a website and blog, and building relationships with key industry experts.
- Test a prototype solution before creating a business plan
Successful companies are built on solutions that work, have a market, and are scalable. Many business plans are built around a dream, with idealistic costs, margins, and customer demand. Value your passion with feedback on a minimum viable product before committing.
- Check your tolerance for risk, uncertainty and change
Starting and growing a business requires you to be comfortable, even excited, with the challenges of the unknown. If you see the business plan as a way to eliminate uncertainty, then you shouldn’t create it, as it will become out of date almost immediately. Every business is a work in progress.
- Calculate your need to acquire the missing required skills
Every successful business requires a focus on providing solutions, business management, and customer service. It is possible to partner with others to complement your skills, but you should consider taking time to gain experience in these areas before beginning a plan.
- Test your physical, mental and emotional stability for the trip
New business creators often defeat themselves by neglecting their physical, mental, and emotional health. You need to be sure that you can handle mental and emotional stress, find time for family, and find a balance between non-work social and physical activities.