it is, really, so simple:-
- Get a "shoe-box" and place all of the papers of the past and which relate to your idea into the box.
Some of the papers will be of the "thoughts & ideas" type and others will be of the "invoices, receipts, dockets & bank statements/credit card statements" type (the latter type is most important, because - once combined & analysed - they will tell you what you have already invested in your business idea).
More about this later...
- Identify a good, honest and experienced accountant...
he/she will be pivotal in the development of your future plans.
If the accountant maintains healthy relationships with the legal, insurance and funding fraternities...
all the better; these sort of connections will save you much time and money as you proceed.
- OK, so now you have got your accountant, what next? Well, the logical steps are as follows:-
- Marketing Plan (draft #1)
- Business Plan (draft #1)
- Risk Analysis
- Legal Documentation
- Letters of Intent (from your probable, future customers/clients)
- Funding requirement
- Marketing Plan (Final)
- Business Plan (Final)
- Funding Application - assume this to be successful (remember to bank the money!)
- Contract your Customers/Clients
- Marketing Budget (Original)
- Business Budget (Original)
- "Purchase" all Resources (Land; Labour; Capital; Organisation)
- Start OPERATIONS - by Selling & Producing...
do not forget Administration
- Constantly monitor all Results
- Be prepared for nimble Change...
when Results vs.
whilst the accountant (amongst many other duties) translates all the activities of your business into:
- Balance Sheets
- Income Statements
- Cash Flow Statements
- Revision #x to...
the Original Marketing Budget
- Revision #x to...
the Original Business Budget
- in the process, he/she will act as your Adviser and also as the Caretaker of all the Resources which combine to make up your Business.
Thus providing you with the optimum Return on your Investment.
mainly because each has certain pitfalls which, if not addressed, will likely lead to some serious common mistakes - mistakes which would only become apparent later on in the process.