“I work in the financial industry, but my real love is teaching. However, I don’t want to become a regular teacher because of the low pay. I have some innovative ideas on starting a business in education but I am unsure how to proceed with them. Some of my concepts have never been tried before in Jamaica and I need some assistance in making them into a reality.”
Successful self employment and business ownership are two ideals which most people with unfulfilling nine-to-five jobs dream about. Some wish there was some way to make their hobby or passion make money for them, but never have the courage to give it a try. Others launch out into entrepreneurship with the enthusiasm of the eternally optimistic, thinking that being in love with a business idea is enough for it to be profitable.
The majority of small businesses established in Jamaica generally get started without a plan of action to guide the operations. People tend to think that they already have the skills to succeed, especially if they had gained experience in the business area when they were working for someone else.
The typical excited entrepreneur thinks- “How hard can it be to run a wholesale shop? I just need to buy the goods, price them right and the people will come!”
The reality is that a written plan is as essential to the successful design of a business venture, as a building plan is when you’re constructing a house. Both provide the blueprint to show you the steps to complete the project, and without them, both business and house will probably be unstable or even collapse.
What exactly is a business plan, anyway? According to Tim Berry of www.bplans.com, it is any plan that helps a business to look ahead, allocate resources, focus on key points and prepare for problems and opportunities. A basic plan includes a summary, mission statement, keys to success, market analysis and break-even analysis. It also has descriptions of the company and its management team, its product or service, forecasts and financial analysis.
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Unfortunately, many people are scared to even attempt writing a plan, thinking of it as a huge, imposing manuscript filled with figures and analyses prepared by people at lot smarter than they are. True, some business strategy plans for large corporations are very detailed, but even the smallest business can be boosted by a simple plan. In fact, if you’re hoping to get a loan to finance a start-up business, most lending institutions will require you to submit a business plan.
Kellie Magnus, Director of CARIMAC.com, the Institute’s business development unit, confirms that business planning is not only for large enterprises, but is vital for small businesses too. “It’s like a family budget for your business,” she points out. “No matter how small your operation is, you have to think your ideas through and have as much background information as possible before you start.” Magnus stresses that the failure to strategize is the primary reason why many small businesses fail. She reveals that a plan will help entrepreneurs to see potential problems on paper before they start their business, thereby helping them to avoid these pitfalls.
With the realization that many entrepreneurs lack the skills to prepare a simple business plan, CARIMAC.com has designed a course to solve this problem, entitled, ‘Me, Inc.: Business Planning for the Self Employed’ which will be held from July 15-22 at Carimac, UWI, Mona. According to Magnus, the course is designed to help self-employed people make the distinction between themselves as individuals and as business operators. “Many small businesses are formed out of a hobby or personal dream of the owners,” she pointed out. “What usually happens is because there is no feedback required on their ideas, they just starting operating and doing things without any planning or forethought.”
The course, which is specially geared towards persons involved in creative enterprises, media and communication, will take entrepreneurs through the process of writing a plan for their own business idea. Magnus notes that participants will take away a detailed plan defining their product or service. They will also get an understanding of their target market, industry and competition. Participants will be able to devise an operational plan which will help them to know what they are going to do and the best time to do it. Finally, they will develop a financial model, forecasting income and expenditure over five years.
Whether you are contemplating a new business venture, or you are in the trenches already fighting for the success of your business dream, this course may give you the blueprint needed to go forward. You can receive more information on ‘Me, Inc.: Business Planning for the Self Employed’ and other courses at www.summerschool.carimac.com.
Copyright © 2007 Cherryl Hanson Simpson. No reproduction without written consent.
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Originally published in The Daily Observer, June 21, 2007
Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl