Your Business Plan

At BizWorks, two of the main things we require our potential new residential members do are to write a business plan and do three year cash flow projections.  There has been a huge debate recently in the incubator world about requiring business plans.  Our belief is that taking on a small business requires a great deal of time for our staff, our committee and our volunteer mentors.   

When we look at a potential new member we want to make sure that member knows where they are going with that business and actually has some business savvy.  We look at things like how well they write, if they understand how to put together measurable goals, if they understand how their cash flow projections relate to the business plan and if they understand how the cash flow projections work. 

These types of questions help us understand if a person will make a good business owner. It helps put them on the track to success.  Without a plan, how do you know where you are going and if you got there?  If people make no plans for their small business, how will they proceed with each step a business should take to become successful?  

The other thing a business plan process does for us is show us who can stick to deadlines and who ignores the deadlines we set.  Once we begin working with a person, if they consistently miss deadlines, it tells us a great deal about how they will work with us if they become a member.  Usually we don’t get very far along in the process with these types of business owners. 

So, before you take the plunge in starting your business, acquire some education on business planning, there are many courses offered around the area to teach you how to write a business plan.  Invest some time there before investing in your business.  

Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on Facebook and
Twitter @BizWorksCenter

Strategic Planning for Small Businesses

Strategic Planning for Small Businesses

A lot of small business owners feel like they don’t have enough time in the day to do everything they need to do to be successful.  So why would a small business owner want to spend time working on a strategic plan for their company?  Because, without the plan, you really have no idea where your business is going.  Taking the time to assess where your business is and setting goals can help move you through growth periods as well as down turns in your business.  

Taking time for a disciplined effort that can produce decisions and actions that shape and guide your organization sure sounds like something that should be worth your time.  Strategic planning can help you figure out where your organization is heading and the actions needed to make that progress.  

You can use that strategic document to communicate with everyone in your organization regarding the goals and the actions needed to achieve those goals.   Using this document to guide you and your organization can help your employees understand their role and how it contributes to success.   Even a one person show can use a strategic plan to help keep you focused. 

But use those goals to keep you focused and understand that goals and plans change and you should be flexible enough to make those changes as needed.  Explore the subject of strategic planning on the internet and learn the key elements needed.  Start making lists of goals for yourself every day and see if you can achieve them.  Because without goals, it becomes very hard to measure success. 

Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on Facebook and
Twitter @BizWorksCenter

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The Grey Area (1099 versus employee)

Many employers think they can contract out all the work that needs to be done in their organization.  I mean who wouldn’t want to use a contractor? You don’t have to worry about paying taxes, workman’s comp or any other fees associated with an employee.  

So, many employers go ahead and hire everyone as contractors without looking at what the person is doing for them or how they are working.  This can lead to a myriad of problems for a small business owner.   Jobs have to be put through a series of questions to determine if that position can be held by a contractor. 

When you are ready to make those hires, don’t take the easy (sounding) way and hire everyone as a contractor.  Get advice from a Human Resources professional or go online and look up the regulations associated with hiring and become familiar with what an employee looks like compared to a contractor.  

Don’t get into a situation where you have to pay money to the federal and state governments because you didn’t follow the regulations when hiring.  Be aware of the amount of control exercised by you as the employer over the work being done when figuring out if you have an employee or a contractor.  Looking at this before you begin hiring could save you hours of headache and legal troubles.  

Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on Facebook and
Twitter @BizWorksCenter

I'd Rather Be Dusting:

Self Employed Accountability

So, when no one holds you accountable are you the kind of person who holds yourself accountable?  That’s a tough question if you think about it.  We all want to believe that we hold ourselves accountable for the work that needs to get done in our business.  

When a small business owner has no one there they have to answer to, they have to make sure they are taking care of their business.  It’s very easy to do the things we want to do instead of the things we need to do.  

Take for instance your chores you have to do at home.  How many of us really want to scrub the bathtub or the toilet?  Do you put those things off and do the easier things like dusting or folding laundry? It’s the same thing in small business.  You have many things you don’t like to do; maybe it’s organizing the week’s receipts or disciplining an employee.  The point is if no one holds you to it you can easily put those things off.

If you are considering going in to business for yourself, you need to honestly evaluate your ability to stay on task and get things done, even the hard or unpleasant things.  You could have a discussion with your spouse or significant other, or someone you trust in your business life.  Ask them if they consider you a person who stays on task and does even the unpleasant chores that need to be accomplished.

If you find that you are not someone who can stay on task, there is an alternative.  Hire an administrative person who will hold you accountable.  

When looking for this kind of person, you are looking for a strong personality type that isn’t afraid to call you on your actions or inaction as the case may be.  Find someone strong enough to help you do the things that need to get done in your business.  Otherwise, you may be the kind of person who needs a boss and isn’t cut out to be a business owner.   

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Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on
Facebook and
Twitter @BizWorksCenter

Give Me a Break 

(Don't worry it's good for business)

When life comes at you fast and you are trying to balance your work, your home life and time for yourself, it can get complicated and stressful.  When I used to work with hospice families, I always spoke with the caregiver about carving out some time for them to take a break from caregiving.  It was always hard for them to do because they felt guilty about going out and taking a break from their loved one.  I always explained that as someone tending to the needs of another, they needed time away to rejuvenate and distress.  By taking care of themselves, they would in fact be better caregivers.

The same is true with a lot of things in our lives.  Whether we are caring for small children, a sick loved one or our own business, it’s important to have that time to ourselves.  When we allow ourselves to get overly tired, or stressed we aren’t our best selves.   

I experienced this recently taking care of my mother when she needed some extra care for a while.  My sisters were there to give me a break but I felt reluctant to take time for myself.  But what I discovered was the very thing I used to tell caregivers.  When I went out for a while, or just back in another room for a while to read or watch television and unwind, I came out feeling better.

The bottom line is no matter what your responsibilities are; you need to make the time to get away from it from time to time. It doesn’t have to be for a long period of time and it doesn’t mean you need to take a vacation out of town.  Just a little down time, coffee with a friend, a good meal at your favorite restaurant or a movie can help you take a break from the stress of the business. You will feel better and find that you aren’t as stressed when you are running your small business, if you just give yourself a break every now and then.  

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