business plan – Page 5 – TP Javeton WebNet

Study reasons for failure

Starting a business and becoming successful is often part of the American Dream. But there is a difference between starting a business and building a successful business. Many businesses fail within the first few years of existence due to the lack of planning for the long-term, in many cases because there is not enough vision and there is not enough done to properly strengthen the business from the ground up.

If you want to start a business there is an easy way to get a better understanding of why some businesses fail and others don’t. When starting a business try to think about it in terms of building a house. If done right, the house will protect you against any kind of storm or other dangerous elements from the outside world, and it will last for a long time.

Develop and follow a plan

Following the same line of reasoning for your business, as the house offer shelter and protection because it was constructed properly, your business will offer economical well-being when It is built properly. For you and your business the translation is, you want to have a business that is able to weather economical ups and downs (a la the storm in our house example) and that will provide income to pay the bills (a la shelter and protection in our house example).

When building a house there are several different steps you must take in order to have that house built properly. You know you want a house, but first you have to pick a location and get an architect to draw up a plan and a set of specifications. In the business world that would translate to: You know you want to start a business, but you have to come up with a business idea and develop a business plan.

Lay a solid foundation

The next step for the house would be to build a foundation (and eventually the basement) for the house. In the business scenario, you have to build the initial infrastructure (example: connecting with vendors, finding a manufacturer , creating a sales team, renting office space, getting a delivery truck, etc.). Once that is in place you’ll be able to actually do business and earn some money.

However, you are not completely done yet, because you still need to build a frame, put in windows and install a roof on the house. Similarly for , you’d have to pay off debt, improve business processes and get professional help when needed (example: find a tax accountant, select a payroll service, etc.).

Once the house is built you probably want to furnish it and make sure the interior is suitable for your family’s comfort and safety for present time as well as years in the future. Obviously nobody wants to sleep on the floor, if a bed and other furniture is available.

Reinvest in your business!

This stage of the house construction, which is close to completion, is translated to building the business in the sense that you are investing money you earned back into your business. Business owners reinvesting in their businesses is something that is done routinely. One example of that is buying machinery instead of leasing it.

Eventually the business buys a building, hire more staff, , move into new markets, build up a high cash reserve, and buy other businesses and so forth. This is often the step where winners and losers separate. Re-investing money into the business is a key factor for success. If you go and spend all the money on your own salary to buy personal things, you have nothing to go back to when the economy slips into a recession or some kind of disaster.

Build up a cash reserve

The successful business owner has built up a cash reserve or can borrow money from a bank – securing loans with the assets of the business. Going back to building a house this pretty much matches the same efforts.

You pay off your mortgage and have equity available to eventually borrow against when emergency arises. Emergencies do not include paying off credit cards to use them again or to buy a car. Financially responsible owners (home or business) should be looking at the long term and not finance short-term goods with long-term debt.

Is selling ebooks a business?

In order to address the question of whether or not a business plan is needed in order to sell ebooks online, we must first determine if ebook sales can be considered a business, an entrepreneurship or just something you do on the side to make a few extra bucks for your nights out with the boys/girls.

Another point we should touch on is the interchangeable uses of business and entrepreneurship. There is very little difference between the two terms based on the usage of each term. Since every entrepreneur is technically a small business person and entrepreneurship is simply the act of being an entrepreneur, then it follows that a small business can at any time be referred to as an entrepreneurship and vice versa.

How to define success

That having been said, it is an accepted principle that every small business is launched with the goal – or objective, if you like – of achieving certain levels of monetary success, notwithstanding the service it provides to the local community. Entrepreneurs want to succeed at their particular crafts and therefore should have a clear idea of what it takes to succeed. Most successful business owners will tell you however, that whatever that idea is, it must be in written form.

Success online depends on having a plan, or more specifically a business plan. Very often, aspiring Web entrepreneurs contact a designer with a burning passion to have a new website designed, built and launched. FAST! But success takes more than waking up bug-eyed in the wee hours of the morning with the brainstorm of the century. You need to outline and complete a real business plan and make adjustments before the official launch.

The think-it-through phase

Mentioned earlier was and if it is to be a serious endeavor then it has to be considered an online eBook business, in which case the aspiring entrepreneur will have to provide enough information to satisfy the requirements of a business plan writer or to fill in the blanks of a pre-printed BP form. Thinking through the questions and answers is a vital step towards developing a good business plan. For example:

Do you have a company?
Do you have a logo for your company?
If no logo, what color scheme do you like?
How many products (eBooks) will you offer?
Are they all written and ready to go?
Do you have cover art for your books?
What system of e-commerce do you intend to use?
Will you offer just pdf or exe formats, or both?
Do you have the domain, plus registration and hosting?
Do you have a projected launch date scheduled?
How many affiliate products do you have to offer?
Etc.

Defining what you do, your market, and how you intend to be different are vital considerations for starting your online ebook business. You only get one chance to make a good first impression.

For an eBook online business, the competition is fierce and filled with some shady characters. When you begin the process of planning before jumping in, consider your image first and then answer “How will I establish credibility in the early going?”. Weave this into your business plan and you should do well. Don’t act before thinking or you may be perceived as just another online marketeer.

In summary

Your image comes first – It is recommended that you have a stunning set of graphics for your corporate image to make a favorable first impression. Hire a pro if it’s in your budget.

Credibility is a close second – Although it does take time to build a solid reputation in your marketplace, you can help yourself in this area by soliciting opinions from trusted people to give honest feedback about first impression and how credible they think you are.

And of course your Plan must guide your operating activities – If you can’t hire a financial/accounting pro to write your business plan, I’m sure there are Outlines or templates for creating a business plan available free online. Get one. Use it. Be flexible, and change as you go.

A final word

I know that many startup online entrepreneurs neglect creating a business plan. Selling eBooks online without physical inventory except bits and bytes seems so easy that you will be tempted to just dive in to a ebook sales opportunity with both feet and not give the plan a second thought. But keep this thought in mind: Your chances for success will improve tremendously with a real business plan.