FAQs

Why do I need a business plan?

If you do not know exactly where you are going, how are you going to get there? Solid planning and good management skills are vital to the success of your business. A business plan is a written summary of what you hope to accomplish with your business, and how you intend to organize your resources to meet your goals. Your business plan acts as a guide for operating your business and measuring your progress along the way.

Creating the business plan will help you:

• Look ahead and think realistically rather than over-optimistically;
• Identify your customers, market area, pricing strategy, competition and potential risks;
• Pinpoint deficiencies and identify new opportunities and strategies;
• Establish the amount of financing or outside investment needed and when it is needed;
• Define your business goals and strategies with confidence;
• Convince lenders, investors and business associates that you really understand your business; and
• Monitor your progress over time and make appropriate adjustments to your plan early enough to ensure success.

Who should prepare the business plan?

Business plans should be developed by the people who will be implementing them, since they are the ones who will ultimately be running the business once it opens. On the other hand, getting help from consultants and/or experienced business people can help ensure that your plan is based on sound analysis, free of deficiencies and convincing to lenders and investors.

There is a lot of information available on the internet about incorporating, financing, licensing, etc. Why would I need to seek legal advice?

Choosing the right business structure is one of the most important decisions you make when launching your business. If you've reviewed the available information, understand the advantages and disadvantages of each option, and feel that the decision is clear-cut in your particular situation, then you may not need legal advice. If, on the other hand, you have any concerns or questions, then legal advice early in the start-up process may save you a lot of time, money and stress in the longer term.

How would an accountant help in the planning stages of my business?

As a business owner, you need to keep accurate, timely and thorough financial records covering all income received and expenses incurred. A professional accountant can help design an appropriate system for recording the information you need in your particular circumstances. He or she can also provide input into the financial aspects of your business plan. An experienced tax accountant can also give you the necessary tax planning information.

What is the difference between marketing and promoting?

Marketing is a process that involves planning as well as implementing the conception, pricing, promotion and distribution of ideas, goods and services. It is more than just the act of advertising or promoting — it is a combination of activities with the ultimate goal of satisfying customers by creating value.