0 4 min 2 yrs

Many new entrepreneurs looking to start a business get started by writing a business plan. At least they try to start their business by writing a business plan. And while this is the advice you’ll get from most coaches and consultants, it’s probably not the right way to begin. Many get stuck after the company description part and don’t know what to write next. And there’s a good reason why, they don’t know what to write.

Speed: This is one area you must take seriously to be able to succeed in your business endeavor. Speed simply means being able to adapt to, initiate and capitalize on changes instead of being a victim of them. You must have realized by now that the world of internet background is characterized by unpredictable and sweeping changes. This is occasioned by the technological advancements that are drastically upsetting the playing field.

The only thing worse than not doing any research is not verifying viability. The tools available for entrepreneurs are many and can sometimes feel complex. I meet many people developing their business plan and doing their market research without a clue of how to prepare a viability analysis. I’ve got a very simple system called the Three Tools of ViabilityTM. The tools are available to every business owner or prospective entrepreneur and are fairly simple to use. The tools consist of an income statement projection, a cash flow report and a break-even analysis. That’s it. That’s really all you need to test for financial viability.

Were you to do the same thing with the same book looking for -ants- and anything related (-bug-, -ant- in the singular, -insect,- etc.) you would go through the book in the same way, marking everything related to ants. It takes a little more time, but you have more information when you’re done. Rather than just referencing -ants- in the book, you’ve found everything that includes -ant,- -bug,- -insect- and so forth. Using this, you not only know where it references -ants- but you have contextual references as well, giving you more depth.

A. Be Honest: This is really a tip for the whole process. Be brutally honest with yourself about the state of your business. You’re not trying to impress anyone. In fact, nobody else needs to see your SWOT Analysis. You’re simply trying to get profoundly related to what is actually happening in your business so you can do something about it.

Firefighters don’t really know what their day will be like. They are in waiting position. Suddenly they get a call, they rush quickly and get on the fire engine.They turn on all the sirens and red flashing lights,drive like mad to the scene of fire, often arriving late.

Knowing and employing this five knowledge based areas in your business will help you avoid the cash crunches that become your nightmare when you fail to utilize them.