One of the biggest mistakes a new entrepreneur can make is underestimating how long it takes a new business to generate cash. Starvation ensues. Understand these time-consuming pre-launch phases to better predict that first payday.
Making the plan
The process of creating a Business Plan can take weeks or months – it depends on the complexity of your business. Give yourself enough time to do market research, cost supplies, investigate financing options and write up a decent plan.
Getting to the plan
You likely won’t action your business plan as soon as you finish writing it. There could be a period of time between finishing the plan and executing the plan. Meanwhile, you’ve got to eat – so make a pre-plan plan to support your life.
Rolling out the plan
The big day arrives when you put your plan into action. While you’ll be busy doing all of the things required to successfully launch your business revenues may still be quite distant.
Budget for a penniless six months from the day you open your doors. Raise or save enough money to feed you and your business for that period of time. If you make money sooner – it’s a wonderful bonus.
Total all of the above weeks and months to plan and prepare your business…then add some more time, just to be safe.