Thursday, December 22, 2011

Do you have a business plan?

I know, I know—hard, boring—but if you want to start a business in this um…challenging…environment, you really need one.

Luci Scott, AZ Republic, Dec 16, 2011, says the Small Business Admin has some tips on creating one---also you may be able to get a retired exec to help (SCORE).

There are not a lot or even any grants lying around out there—loans are hard to get. You really need your ducks in a row. You need to have on hand at least 20% of any amount you want to borrow.

Also—banks hate small loans now.

Drawing on equity from homes is also a problem—many homes don’t enjoy equity anymore.

Venture cap firms want to see a track record.

Ask for a line of credit instead of a loan. Try to get the money from friends and family. Start small, work up gradually.

Be clear on who your customer is—promote where there are large numbers of them. Forget other places.

Mrs Fields is a tough role model these days. You need to be hard-nosed. And let the chips fall.

Even if they are chocolate.

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