Third of Four “fys” – JUSTIFY

In this series we have IDENTIFIED and QUALIFIED you and your business idea.  Now let’s JUSTIFY it as we roll through The Process of the Four “fys”. The justification process is about planning and money.  As any business person will tell you, money gets you started, keeps you going and justifies why you are involved in your own business (AKA making money in business). But before you can even think about approaching a bank, investor or breaking into your savings, you need to develop a business plan to serve as a good tool in figuring out what you want your business become in the short and long term future.  Before any respectable lender or investor thinks about writing a check to support an idea, they will want to see the research to show them that this really is a good idea and most notably a profitable one too.

Entrepreneurs come from all backgrounds, but most of them come from jobs that paid them a salary or set wage.  When you own a business, you get paid only if you have a profitable product.  This is a hard reality that many potential new business owners have to face when moving an idea from their mind to the marketplace.  It is a risk that needs to be thought through carefully, and that is another reason a solid business plan is so important. New and experienced entrepreneur need to justify a start-up or expansion idea as it relates to personal income. Can they pay their current bills and sustain a profitable business if they take the risk of moving forward with the idea?

Starting a business or growing one, can be very exciting, and it can be very frustrating. Not everyone is cut out to run their own business.  But not everyone is cut out to work for someone else.  The BCEDC is a local resource for information or entrepreneurs to take advantage of.  We are here to network you with expert information for business plan development, financing and investment and general business counseling.  Economic Development is about building wealth for our communities, businesses and its residents.  Please let me know how I can help your idea. Next post, the final fy: SOLIDIFY