Forums: Discussions for entrepreneurs and small business.

If I don't need finances or investors what do I need this head-ache for?Just as in the past I have always financed & supported my own ventures.If I can't pay cash then I don't Need It! I have my plans for growth/expansion but they will only happen as the funds are available.I have been debt free for 12 years now,I have one credit card that when used it is paid in full each month to avoid intrest rates.So "How Bad is this way of doing businness? I can say that "This is OUR BIZ" no bank loan,no investors,no debt,no stock-holders, ='s NO PROBLEMS! If this has worked each time in the past should I really change the way I run my stuff,and if I am not wrong then why aren't there more articals on starting,running,& living debt free?Thanks Folks,Nailed                PS: I'm not looking to start any great contraversy I was just wondering why it is so hard for people to do things & live debt free?

Hi Nailed

I agree with a lot of what you are saying. Many people get in to debt when most of the time it is a sure way to fail if your income doesn't keep up with your debt servicing costs. Even if you self fund your business ventures however I do believe having a business plan to keep you on track with where you want to take it. Sometimes the process of writing the plan actually leads to great ideas to take your business further!

Having said that I know many people who find writing a business plan to be a real pain and overly laborious.

I found some software that is pretty useful as it takes you step by step through the process of writing a plan and gives you tips along the way where you are stuck. For anyone who needs help with writing a plan but doesn't want to pay consultants large amounts of money they should check out Palo Alto's Business Plan Pro.

Thanks for the great post Nailed!

Absolutely agreed DanePymble I found putting my plan down in writing helped me to focus on the aspects that would be most important and ween out the ones that were potential time and money wasters.

Nailed - you may find a time when you need investors or have to verify that you're a legitimate business and not simply a fly-by-the-seat-of-your-pants kind of operation.  Having a business plan that you can show to these people will be one of the easiest ways to prove your dedication to what you're doing.

It's not a matter of living debt-free, it's more a statement of your commitment to your venture.  That's awesome though that you've been able to startup without borrowing, I wish more people took the time to save for their dreams and realize them without needing funding.

Obviously you should have a catchy business plan in order for you to be considered for funding.

I agree with everyone saying that a business plan is a good thing to have in order to show your dedication to your venture.

Not only does it show potential investors and lenders that they can take you seriously, but you could use it yourself to setup goals and potential milestones as your business moves forward and you grow.

You could use it to tell how close you are to achieving something or to see what you need to adjust in order to correct a misstep that you may have come across.

A business plan is not just for 3rd party investors and the like. It helps to solidify your direction, strategy and goals.

What's up Nailed.  Great question.  There are two different schools of thought on this.  Some people have success without a business plan, others swear by them.  I used to not have a plan, but I'm now trying to attract an investor, so I will need a business plan.  So I wrote one, my first ever.  My first business didn't have a business plan, and it was a modest success.  I gotta say though, writing a business plan has clarified a lot for things in my mind, let's me know what I'm doing great and where I need improvement.  So, if for no other reason, make one for yourself.  The beauty of it is, you can always change it around, since no plan is truly static.  Good luck with your business.

We started with a powerpoint outline of a business plan. This helped us focus on action over talk.  We had an operational website in three weeks.

In month three of operations I flushed out our plan for a business competition.  Their specified format called for one page on each topic: executive summary, business concept, industry/market, operations, marketing followed by three pages of monthly cash flow. 

I liked this format because it forced me to be brief and writing it out long form provided no new insights for me.  However, I was happy to have three months of real numbers to use in my projections for the competition.

Now I am using that plan to seek financing from others and bring on more partners.  It is not perfect or comprehensive, but it gets the point across. 

I would say that everything you do as a start-up needs to provide you value.  If a full plan isn't going to bring you value then use outlines and notes.