Blog Post: Of Business Plans, Rock Music Appreciation, and Adult & Community Education Courses

In my last blog, I mentioned that the two main reasons behind business failures are poor management and lack of a business plan.  If you missed my last blog on ways to improve management skills (including a write up on the entrepreneurship training program S.E.E.K.) please click here to read that blog.  This blog is about business plans (and eventually mentions “Rock Music Appreciation”, a fun course being taught – by me – through the Palm Beach County Adult & Community Education Program at Jupiter High School.  The course starts October 15th , registration starts September 29th and runs for two weeks, spots are first come, first serve).

While working on a project for the Treasure Coast Workforce Development Board, I performed research that indicated that while 80% of all business owners believed that business plans were very important, only 20% actually had a business plan.  With results like that it isn’t surprising that only 10% to 30% are left standing five years after opening.

Many believe that business plans are only vital to entrepreneurs who are looking for capital.  Why it’s true that a business plan is required to obtain money, whether a bank loan, or attracting an investor; that is just one reason for having a business plan.

Business plans serve as a feasibility study.  While potential entrepreneurs may have ideas for businesses, they need to be sure that they can earn enough money in their businesses to live the lifestyles they wish to live.  At the completion of the business plan, entrepreneurs will know the level of business required (sales, number of customers, etc.) to earn enough revenue to pay all their bills (business and personal), and earn the profits they desire.  Without a business plan, an entrepreneur may invest heavily in a business, doing everything superbly, and still not be able to earn enough revenue to pay all the bills and earn a decent living.  Therefore, rather than spending the time (writing an effective business plan takes a couple of months, not weeks), or money (hiring a professional to write a business plan is not cheap), the majority of new business owners jump right into their new business.  The result, much more often than not, is a business failure which usually comes after the entrepreneur has run up considerable debt.  It’s foolish not to spend the time and/or money required to generate a business plan before opening up a business.   After all, major companies perform market tests before rolling out new products.  Sometimes, after the market test, they scrap their new product idea, thus minimizing their losses.  The same is true with a business plan.  Even if an entrepreneur invests in a business plan and the result is not to pursue the business, it was still a wise investment since it eliminates the debt that would have been incurred if the business was opened.

Business plans also set up initial strategies, tactics and expectations for the business.  This allows the entrepreneur to start quickly and adjust the plan when expectations differ from actual results.  Why is this important?  Often the success of a new business is race to become profitable before the debt is too large to overcome.  Without initial strategies and tactics, time needs to be spent developing them while operating the business.  Tweaking tactics takes less time than developing them, hence a better chance to win the race.  In addition, while in business, the emphasis is often on putting out fires, not long term growth.  The result is that the business owner often makes short terms decisions that block long term growth.  Having pre-established strategies ensures that all business decisions are analyzed within the framework of long term growth.  Finally, without expected results, how does an entrepreneur know if his/her business is doing well, falling behind, or on course?

The last point I will make regarding the importance of business plans is that by going through the business plan process (either by yourself or with a professional business plan writer) the entrepreneur learns his/her strengths and weaknesses.  This helps the entrepreneur build a management team (staff, consultants, etc.) that can help ensure success.  For example, a superb car mechanic may decide to open up a new auto repair shop.  During the business plan process he/she discovers that analyzing and interpreting the financials was either not a strength, or something he/she would rather let someone else do so he/she can concentrate on managing the repair shop.  Therefore, this person dials 561-863-0895 (The Palm Beach County Resource Center) and hires them as their Fractional (part time) Chief Financial Officer.  This cost is added to the business’ financials so it is part of the feasibility analysis to determine if the business is a go; and the expertise is added to the business to reduce the risk that the business will fail because of poor management.

Hopefully by now you see the importance of a business plan, whether starting a new business or looking to improve the performance of an existing business.  Next up is the decision on how to get your business plan written.

Your first option is to decide to hire a professional business plan writer.  There are many options here including the aforementioned Palm Beach County Resource (PBCRC).  PBCRC is a particularly good option if you are looking for a loan since its Executive Director; Mr. Paul Skyers,  knows what types of businesses different lenders loan to, and what those lenders look for in loan applications (which includes business plans).   My company, DTR Inc., also writes business plans for entrepreneurs, however it specializes in helping entrepreneurs develop business strategies; writing business plans aimed at getting investors rather than loans; and does not get involved helping its clients secure funds like the PBCRC does with its loan packages.

A second option is to write the business plan yourself.  There are books, software, etc. that can be used to help you, but there are nuances to how each section, and the overall plan needs to be written.  Therefore, taking a course in how to research and write business plans will aide in the process tremendously; and it just so happens that I am teaching a business plan course this term in the Adult & Continuing Education Program at Jupiter High School.  The course costs $50 and runs for eight weeks on Monday nights starting October 13th.  The course is from 6:00 PM to 8:30 PM and will let out a couple of minutes early to ensure that I, err I mean my students, get home in time for Monday Night Football.

This brings me, finally, to Rock Music Appreciation.  I am also teaching this fun course on Wednesday nights at Jupiter High School .  This is a relaxing course to top off a hard work day.  You come to class and listen to music while a PowerPoint presentation informs you all about the band/artist you are listening to, including how it was formed, the band’s members (past and present), the band/band members appearances in pop culture (e.g. use in South Park, The Simpsons, etc.) and more.  The course covers 96 bands from the sixties (Beatles, Rolling Stones, etc.) thru today (Death Cab for Cutie, Green Day, etc.) in a competition format where the classroom participants vote on the bands/artists that advance until a winner a crowned on the final night.

Sign up for these courses, and others throughout Palm Beach County , are at the school the course you are interested in is being taught at (in my case Jupiter High School ).  I know at Jupiter, payment is by cash and check only, no credit cards.  If you did not get the course flyer in the mail, click here to view the courses being offered this term.

Hope to see you in class, if not; catch you in my next blog.

 
In addition to business consulting (DTR Consulting) Jay Goldberg is the author of the critically acclaimed book, "How to Get, Keep and Be Well Paid in a Job" (book's web site).