It is not easy to write a business plan, but it is important that entrepreneurs do. For example, if you are the type of people who are entrepreneurs – individuals sociable types that probably are not very good with fine details that are the auditors. Therefore, they will often find it difficult to prepare business plans. But they must do this so they understand what they are getting into, and evaluate business opportunities properly, without optimism, to escape with the game.
Over the years, since retiring, I helped entrepreneurs in their various enterprises, and often they need to begin the financing or the financing of this effort, then they will seek to obtain a loan. Bankers know that entrepreneurs who are not very good at writing business plans for start-up, so they usually only for business plans that half cooked, or in the case of administration small businesses, they have a form, which is by the contractor to place the business plan is completed about 13 pages.
However, could a reasonable start-up plan easily run 40 pages including forms in the back. It seems to me, instead it will be for businesses, commercial loans and therefore requires less suitable business plans – we should go in the opposite direction, indicating that the business of very well made plans. In fact, as a taxpayer, I am afraid that my tax return dollars to the SBA’s loan program to subsidize. And many of these loans vary, but right now the tax payers and SBA guaranteed 90% of the loan with local banks that make SBA loans.
Since then the bank has a very low risk because the government guarantees 90%, so that they are only on the hook for 10%. Are you beginning with the problem to see that? If entrepreneurs and small companies can not start preparing the plans, and they do not know what they are getting into, why the earth is the SBA and commercial banks providing more rope to the future business owners to hang with? In fact, makes no sense at all?
Maybe that’s why I often tell entrepreneurs to create a plan for starting a business, then with the actual numbers to look and devil’s advocate a little against her enthusiasm and optimism opportunistic dominant hyper-drive. In fact, I hope you will consider this and think about it, to please her. If you have any questions, comments, concerns, or case studies, I also would like to hear about it. Please shoot me an email.
