Transparent Christian Magazine

One of the most common mistakes the average small business owner makes is their lack of business planning. For some individuals, a business just comes together and they don’t think about planning until something bad happens. For others, they approach their business with a cavalier attitude and see planning as unnecessary. Some just don’t know they should plan at all. And finally, there are always those that don’t plan and hope God will just take care of it.

The act of business planning is a Godly. Scripture tells us, “Is there anyone here who, planning to build a new house, doesn’t first sit down and figure the cost so you’ll know if you can complete it? If you only get the foundation laid and then run out of money, you’re going to look pretty foolish.” Luke 14: 28-29, The Message.

This scripture does not say, “Just do it and God will bless it.” It says plan. So, how do you plan?

Below are some areas to consider when planning your business:

• Pray about what you want to do. The last thing you want is to get in the middle of a new business and realize that God is not there with you. You should feel peace in you about the venture you are preparing to embark upon. This does not mean you won’t fear the unknown, but that you will be comfortable handing those fears over to God.
• Write a Business Plan. There are plenty of resources to help you with this. It does not matter if you use software for this or buy a book. The important point is to do it. Get it on paper. It will force you to think through things that may not have crossed your mind in the past. When you do this, include both a marketing plan as well as a financial plan.
• Determine your business structure. This aspect of your planning has a lot to do with limiting your liability as a person and making the most of tax advantages. You will need to talk to an attorney and an accountant about this area of your planning. Just remember that sole proprietorships and general partnerships are probably not the best idea.
• Determine what insurance your business needs. When most people think of insurance, they think about what benefits they will receive. I recommend you think about liability. Liability to the general public and to your employees should be something that you are gravely concerned about. Too many business owners find this out the hard way.
• Keep good records. The record you throw away or lose may be the record the IRS wants to see.
• Determine your technology needs. There are many new resources available through the internet that may allow you to forego some of the traditional ways of handling your technology needs. For example, do you really need a fax machine and a fax line, or can you just use a service like eFax, which allows you to send and receive faxes like an e-mail? Do you need a phone system (PBX) or can you use a virtual, web based system like onebox?
• Determine where you can save money. The beauty of owning your own business is that every dollar you save is a dollar that can go towards something you want to spend money on. You can find free stuff, if you just look for it. For example, craigslist has a “free” section where all you may have to do is contact someone and then go pick up what they are giving away. Also, there is plenty of “freeware” software available that, many times, work just as well as the expensive software. Download.com is a good source for that.
• Build a support network. There are plenty of other professionals, who have been doing what you want to do. Find them and get to know them. They may save your business, should you find yourself in a bind.
• Blaze a trail, but only if you must. Reinventing the wheel is inefficient. However, profit is found in innovation. You may be targeting a niche area that no one else is marketing, if so, then blaze the trail. But, if others have taken your path before, then do you really need to spend a lot of time and effort cutting a path right beside theirs?

There’s a lot to consider when you are starting a business or you are already a business owner. Planning is a good thing, but it can be quite scary too. It’s always better to anticipate the issues that may beset you than to wake up one morning any have those issues swallow you whole.