READY, FIRE, AIM
How do you know when you are really in business?

For the past two years I have been consulting with small business owners, all of whom wanted to borrow money or raise equity for their business growth. Most showed me a business plan of some sort. All too often, the business plan was devised as part of a loan application. In other words, the business owner filled out some sort of template for business planning because the SBA or a bank said it was necessary before a loan could be considered, much less granted.

A business plan may get the process started, but the end result must prove you are indeed in business and have a real plan for business growth that makes sense and can be supported with reasonable projections based upon reasonable assumptions. Unfortunately, in too many cases, the "business plan" is instead, simply a means to an end, a document that is driven by the amount of money to be borrowed so guess what? The sales projections minus the expenses conveniently happen to equal the amount to be paid back on the anticipated loan. Enough is enougha business plan must be "legitimate" to truly help get a business ready for lending, by starting with believable sales assumptions to be used as a management tool on a monthly basis to monitor company progress against the assumptions made.
Those assumptions need to be driven by some type of research. Check your aim, before you fire. In simple terms:
a. Is there anyone out there who will pay for what I sell?
b. How much will they pay?
c. How many will buy at my price?
d. How many need to buy it at my price before I can make a profit?
e. Have I actually asked anyone if they would buy what I sell, at the price I now sell it for?
f. Have I sold enough to validate my assumptions?
g. If you are able to credibly answer all of these questions, then ask yourself, how will I get my sales people in front of the potential buyers often enough to sell the amount needed?
Only when you have answered these questions and you believe your own answers, do you in fact have a company in business and a real story to tell to the lending community. Remember, your story, your business plan, must be substantiated with projections which are based upon credible assumptions. Now, once you've taken aim, then fire away! If on the other hand gathering the answers is a mystery to you, then reach outGet help. It is available.

As a small business owner, having the right tools to help you manage your company is critical. In many of my articles, I will be referencing a new program called The Dot Connectors. It is a valuable resource to assist business owners in "connecting the dots"; to help you put the "ready, aim, fire" process in order and to help keep your business on trackand growing.

Learn more about this author, Jack Mcdonnell.
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