SME Toolkit www.smetoolkit.org
Dealing with Start-Up Problems
Provided by Visa, Content Partner for the SME Toolkit
Starting up a business requires a great deal of energy and navigation. Here are a few tips:
- Have a strategic plan.
There's a difference between a business plan and a strategic plan. A business plan is cold and it's a collection of facts, forecasts, and assumptions and risk assessment. A strategic plan is your vision, your core values, your purpose in having a business and its goals. Your vision and your plan have to match. In other words, the strength that will get you through those initial challenging months comes from a personal vision, not a business projection.
- Check your forecasts regularly.
If you have prepared a business plan and financial forecasts, don't put those in a drawer and forget about them once you've gotten funding. Your plan is a living document. It's a fluid document and you need to evaluate it at predetermined times and ask ‘Am I on target? What adjustments do I have to make in order to succeed?'
- Make sure you're capitalized.
The biggest problem for start-ups is undercapitalization. They don't start with enough. They never planned for start-up costs and the day they open the door they're in trouble. They're worried about bills and they devote their efforts to that instead of to marketing.
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