Turning an Idea Into a Viable Business

This is a guest post by Shannon Suetos.

According to the SBA, approximately 600,000 people start a business every year and many people never draw up a business plan.  For some people, this works (e.g. Apple). Unfortunately, not everyone is as lucky as Steve Jobs. If you are going to invest all of our personal assets and time to do something you love, research your market, review the product landscape, identify timeline for goals and write it all down.

Typically, a business plan is the first step when looking for funds. VCs, investors, banks all need to see a plan to understand your business infrastructure, operational costs, royalties, potential revenue, primary and secondary markets, competitive landscape, intellectual property, financials, etc.  The reason why so many businesses don’t create a plan is because it isn’t easy.

If you are a first time entrepreneur, just being an expert in your trade isn’t enough. Projections, marketing, industry research and goals will set you apart from your competition.

Business Plans

There are two routes to take when it comes to business plans, you can write the plan yourself, or you can hire a professional.  Investing money on your business plan should produce a good ROI since it can help you attain capital and keep your business organized once it is up and running.

Internet sites like Bplans.com, the SBA and PlanWare all provide business plan templates and offer assistance on research. A template is a good place to start. I emphasize to start because it really is a place that provides the structure. You need to do the work and find all the data. Templates can range anywhere from $10 a template to $200 for template software.

Business plan writers can be found on websites such as USBusinessPlan, Ethos360 and MasterPlans.  Depending on the size of the company you are starting, you can hire a business plan writer for $200-$5000.

Funding

Money is the backbone of any business.  Part of being an entrepreneur is being able to think outside of the box—so get creative with your funding.  The bank is not the end all be all anymore for small business loans.  Peer-to-peer (P2P) lending is one great alternative to look into.

P2P lending is a fairly simple idea—one person is looking for capital, the other is looking to invest and are each are matched up through a website to discuss the potential investment.  There are many websites now dedicated to help people connect and find valuable partners.  Prosper, LendingClub and Peer-Lend are just a few sites to look into.

Sites like LendingTree are also a great choice.  Because banks are put in a competitive environment, you will be able to get the best loan for your company.  E-Loan is a similar site to help get the capital you need.

iBank provides you with a commercial lending marketplace for business loans.  They have over 335 lenders to help you in your search.

Organization

Writing a business plan, gaining capital and legal issues are just some of the many starting points you need to think about right out of the gate.  Becoming organized and following through the steps one by one can really help.  There are some great resources out there for you to use for little or no cost to help you in these steps.

1. StartMeUP Program: Resource Nation, teamed up with Entreprenur.com, StartupNation and Ladies Who Launch to provide a free service to help you build your business from the bottom up.  This program will set you up with a dedicated consultant, a customized startup schedule, provide assistance to help you find the best resources for your company and help you get started with legal entities, insurance, marketing and so on.
2. Small Business Association: The SBA is also a great resource the government has set up to help the small business owner.  They will help you attain all the necessary permits and help you with trademark issues as well as many other issues you will need to get squared away.
3. Angel Investors: Gaining capital is also a worry on most beginning business owners’ minds.  Getting in touch with the right people can really help you on your search for financial backing.  Finding an angel investor may be beneficial because you don’t have to go through a bank to get the money needed.  You can find angels who work alone, or find a network of angel investors.  Janine Popick writes in INC. that, “angel investors usually like to be more hands on and try to help the business with their knowledge in addition to giving it capital. Depending on whether it's a singe investor, a group of angels, or a network, a business can probably raise $50K-$1million.”

Starting a business is new and exciting, and with the right kind of help you can be on the fast track for a great profitable business.  Organization and knowing where to start for help are two main factors when getting started.  With the write help and tools, you could be getting all the right help to starting and maintaining a successful business.

Shannon Suetos is an expert writer based in San Diego, California.  She writes extensively for an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs such as telephone systems & VoIP service at Resource Nation.