The main difference between a feasibility study and a business plan?

Posted on January 30, 2012 by James Timothy White

A feasibility study should not be considered a business plan. A feasibility study and business plan plays separate roles in the start-up phases for business. This being said, feasibility studies and business plans are frequently misunderstood. The feasibility study provides an investigating function that should answer the question of “Is this a viable business venture?”

The business plan provides a planning function that outlines the actions needed to take the proposal from “idea” to “reality.”

A well-written feasibility study plans and analyzes several changes or methods of achieving success for that successful business. As such, a feasibility study helps to narrow the scope of the project to identify the best business model and a business plan deals with only one alternative or model. A well-written feasibility study must narrow the scope of the project to identify and define two or three scenarios or alternatives. The consultant conducting the feasibility study may work with the group to identify the “best” alternative for their situation. Generally this becomes the basis of the business plan and plays an important role. My suggestion is that you complete a business feasibility study before you complete your business plan.

A business plan should only be prepared after the business idea has been deemed to be feasible. If your proposed business venture is considered to be feasible, then a business plan should be constructed which provides a “roadmap” of how the business will be established.

In addition, a business plan provides the “blueprint” for project execution. If the idea is deemed not to be feasible. However, if the business plan is note implemented properly then efforts can and should be made to correct its deficiencies, other alternatives may be explored, or the idea is dropped.

 

 


The Most Important 18 Steps To Your Business Success!

Posted on January 17, 2012 by James Timothy White

If you are interested in starting a new business  I have provided a checklist of what you need to do BEFORE you incorporate and open your business.

It’s highly important to pay attention and keep in mind that your new incorporation start-up requirements might vary from the list below, contingent on the particular industry you plan to start up in and the location of your new business.

The number one and most important business decision you will make is your business name for your new company. In addition, if you are not planning on working as sole proprietor then the jurisdiction will require that your corporation’s name include an identifying word such as “incorporated,” “limited,” “corporation”, “LLC” and so on.

  1. Search your new business corporation’s chosen business name, and for similarity to existing names.
  2. Register your corporation’s name (including as a “fictitious business name”).
  3. Pick a place and location to incorporate your new business.
  4. Choose directors for your corporation, they can be your or someone else.
  5. Create, print, and sign your corporation’s articles of incorporation and insert them in the corporation’s minute book.
  6. Write your corporation’s by-laws; make sure all directors and founding officers sign them.
  7. Create a shareholder agreement (if necessary).  This is important if you plan on having a partner.
  8. File your corporation’s articles of incorporation either by yourself or using an experienced incorporation service.
  9. Elect “S” corporation tax status (optional).
  10. Open a separate bank account for your corporation, at a bank that offers a visa debit card or some other small business advantage.
  11. Start a minute book for your corporation’s meetings.
  12. Hold your first board of directors’ meeting.
  13. Issue certificates to your corporation’s initial stockholders (if applicable).
  14. Obtain business licenses and permits for your corporation from.
  15. The federal government.
  16. Your state government.
  17. Your local government.
  18. If you plan to issue shares make sure you hire a transfer agent.

Follow all legal requirements for running a corporation. The last thing you want is to spend money incorporating your business and then be shut down – believe me it can and will happen.

Incorporating can be a long-term benefit to your new business in the long run, but the process can be complicated. To ensure that your new business complies with your state’s legal requirements at all steps in the incorporation process, you may wish to consult with a consultant. Click here to learn more.

Make sure to pick up a copy of my book: The Million Dollar Business Bible

 

 

 

 

Small Business Development Centers- Helpful Small Business Advice

Posted on January 15, 2012 by James Timothy White

When you’re ready to start-up a small Business you never know which opportunity it might take to make your dream a reality. What if there was limited risk of any failure in your venture? It is better to have a backbone beforehand that can support you throughout, and save you from much losses. This is why business coaches are important, like me. I work with many Small Business Development Centers in Calgary, Canada as well as the United States and all throughout the world.

Small Business Development Centres (SBDCs) are a new emerging trend in your local areas. Their main motive (is not to steal your money with high fees) is to give educational services and guidance to local Small Businesses. Those who aspire to become entrepreneurs will benefit from the Small Business Development Centres that. They may from time to time conduct seminars and conferences (where I speak).

There are about 63 Small Business Development Centres in the United States and several more in Canada that lead organizational aligned programs which are usually offered for free.

The services provided by a regular Small Business Development Centre revolve around giving capital to the small scale businesses. They also help with marketing one’s idea, producing superior quality of goods or services, the basic infrastructure, engineered aspects; technical support and measuring whether or not the concerned business idea is feasible these are just some of the basic needs that these centres can provide entrepreneurs.  Generally, these services are provided are always confidential. If you are to learn the business basics these centres are a great start!

A Small Business Development Centre is a budget-friendly alternative to a private consultant. This being said both can offer many benefits if used in conjunction with one another.

 

 

 

 

Need Small Business Help? Business Development Centers To The Rescue!

Posted on January 15, 2012 by James Timothy White

Establishing a new Business is no less than wagering a bet at the roulette table. You place your funds, time, reputation, and a dream on the stake, and then the wheel spins! Unless you have a whole new lot of investors to put their faith in you, so you can make your dream a reality, it’s hard to become a big tycoon. However today there are several small business centres popping up around the countries to help ease the fear and make starting a business much easier.

These Small Business Development Centres are a mix of joint ventures between the Government and the educational facilities like colleges and universities, which aim at educating small businesses and equipping them with the know-how of dealing with the challenges of the ever changing Business World. These centres are becoming very popular, especially in the United States, and have started up in all fifty states, the districts of Columbia, Puerto Rico, and many territories of the United States and around the globe.  This trend is catching on even faster as more and more individuals are aspiring to become entrepreneurs – Which I am very happy to hear!

There are several setbacks that a small business have to face while it is in the start-up stage. The one with a dream is not always in a position of having the capital to start his or her business. In this case, borrowing some funds from the Banks as a loan is a concept that has materialized quite well for most of the entrepreneurs. The Small Business Development Centres can sometimes provide the capital necessary in the areas where the Banks can’t.

In addition to accessing the support that many small business development centres can provide to start-up companies. These centres also provide regular seminars and conferences too which educate people on new process and procedures such as tax rules or business licensing requirements.

Today, many entrepreneurs and small businesses world-wide have access to Small Business Development Centres, which prove to be just as worthy as an expensive lawyer or other business profession would be, the big difference is the Business Development Centres advice and service is free or given at a large price reduction.

Great Links to Check Out:

Business Development Bank of Canada

United States Small Business Administration (SBA)