Six Simple Steps to Planning a Successful Small Business

Six Simple Steps to Planning a Successful Small Business

By Mike McLoughlin,
Youth With A Mission, Marketplace Mission
Visit the Scruples Small Business Forum at www.scruples.net for more information.

To start a small business consider these simple steps.

Step #1. Start with an examination of who you are and what skills, abilities and resources you have to start a small business. Pray and ask God to lead you in the process. "Be sure you know the condition of your flocks, give careful attention to your herds;" (Proverbs 27:23)

Step #2. Decide what type of business you want to start and what types of products or services you will provide. Decide how much income you will need from that business. Seek God in prayer as to how you can fulfil His purpose for you in business. "Whatever your hand finds to do, do it with all your might, for in the grave, where you are going, there is neither working nor planning nor knowledge nor wisdom." (Ecclesiastes 9:10).

Step #3. Do your research. Gather together the facts about the type of business you want to start. Discover who your customers will be and approach some of them with the idea of starting your business. Find out from them what it is they will expect from your business. Discover who your competitors will be and find out how well they are doing in the type of business you want to start. Also, find out what legal obligations you will need to fulfil in business. Be careful to not make many assumptions. Confirm that your assumptions are valid. Ask God to lead you to the right people who have the right information that you need. "Every prudent man acts out of knowledge, but a fool exposes his folly." (Proverbs 13:16)

Step #4. Decide how much money will be needed to start the business and what your operating expenses will be. Decide how much you will be able to contribute and how much money you will need to borrow. Research potential friends, family and financial institutions that can finance your business. Expect the unexpected. Ask yourself; "What could go wrong?" and then plan for it. Develop a contingency so that you are prepared Pray that God will provide for your needs. "A prudent man sees danger and takes refuge, but the simple keep going and suffer for it." (Proverbs 22:3)

Step #5. Set realistic goals for the number of sales you will make, the amount of income you will receive and the overall development of the business. Be sure to take into account the risks of inflation, bad debt, competition and other risks. Objectives must be SMART: Specific, Measurable, Achievable, Realistic, and Time Limited. Break these objectives down into specific tasks in order of their priority. Pray that God will give you a sober mind and will guard your steps. "A simple man believes anything, but a prudent man gives thought to his steps." (Proverbs. 14:15)

Step #6. Develop a written business plan that covers the information you have discovered after the first five steps. Present your written business plan to your family or friends for their advice and comment. Have them pray with you and commit your plan to God so that He will lead you as you start your business. Do an evaluation of your written plans after a period of time and see whether or not you have accomplished your objectives. If not, why not? "Plans fail for lack of counsel, but with many advisers they succeed." (Proverbs 15:22).

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