Trials and tribulations . . .

As with any small business, the trials and tribulations of the day seem to overshadow the to do list. One of the challenges of a small business is wearing multiple hats and then finding time to be the PR guy, the marketing gal, do the bookkeeping, manage customer relations, as well as actually making the widgets.

When tasked with whether or not to outsource a function, I try to to do a value comparison of my time. If I can earn $100 an hour working for a client, it makes sense to outsource a function to a vendor for $50 an hour. Also, remember - Do what you do well and hire professionals to handle that which you do not. If you are not an accountant, why start now?

Do You Need a Business Plan . . .

Very early in my career, I sought advice from a seasoned business owner.

“Do I really need a written plan?” I asked impatiently, being inexperienced. He scoffed, “Why spend six months writing a plan? Go start a business NOW!”

That was great advice, exactly what I wanted to hear. So off I went, and despite myself, I was a modest success. But in hindsight I now realize I could have been spectacular rather than modest.

If you’re an organized sole-proprietor, I imagine you can do just fine without destroying half a forest to memorialize your every proprietary insight. However, if you plan to seek funding, hire employees or otherwise engage in activities to facilitate growth - you’ll find you really need some place other than your head as a repository for your entrepreneurial vision.

The need for a formal business plan within small to medium enterprises (SMEs) is often the $64,000 question. If you’re seeking venture capital or other external financing, let’s calls it a $6.4 million pre-money consideration, because without a business plan you are not likely to get your hands on other people’s money.

For more http://www.dohertyassoc.com/articles/business_plan.pdf

Running a start up business can be tough . . .

We are here to offer friendly advice on the challenges of running a business. We may not know everything, but we will try to point you in the right direction.

We hope to grow this as a collaborative effort. If you have some helpful advice that might help a fellow entrepreneur, we welcome your input.