This article points the small business entrepreneur in the right direction to developing a business plan. In many cases a business plan is not needed but resources are evaluated to determine if generating a plan is worth the investment of time.
The e-mails keep coming. A few days ago I asked my friends and family to be on the lookout for ATM’s. I describe the difference between a bank owned ATM and an independent ATM. I was strictly interested in the independents. I wanted to know exactly where the ATM is located, the name of the business, and what kind of business. With this information I am tracking the locations using a spreadsheet and a map with push pins.
While I wait on family and friends to send me information on the location of ATM’s, I decided it is time to do some preliminary number crunching. My initial introduction to this illustrated a very good return. I’m really interested in determining if I can make some real money or will this be nothing more than an exercise in frustration.
I spent a lot of time on the internet researching the industry as a whole. There are about 220,000 machines in the US that are owned by non-banking companies and individuals. My first thought is that this is about 1 machine per 1,000 individuals (there’s about 220 million adults in the US/220 thousand machines and you get 1,000 adults per machine).
My first concern was making enough money given the labor input against the time invested. In my first entry, I stipulated that in the long run I wanted to make at least $70 an hour for the services I rendered.
This entry is part of a series of entries exemplifying the steps an entrepreneur takes from starting a business to selling the operation. It is a step by step process addressing the multitude of business concepts every small business owner must face. This is a 6 year example from Day 1 to the day the owner receives a check for selling his business. Read this series as if it you were experiencing all of the trials, tribulations and joy of owning and operating a business.
Timing is everything, you have heard this before. Well, it is applicable here. I once had a potential client come to me in the middle of June seeking my endorsement to his business plan. He needed to borrow money for his idea. He wanted to sell fireworks. July 4th was less three weeks away. I looked at him as if he were crazy.
There is a process to determine the where of your plan. Sometimes it is obvious, if retail, then a retail location is ideal. If service and the customer travels to you such as a professional, then an appropriate office location is important. Focus on the type of office environment, medical should try to locate in or around other medical facilities.
If you read my section on ‘Do I Need a Business Plan’ and followed those steps, you are now ready for the next step in this process. Hopefully two important barriers have been breached in your quest to be the next new business. First, you have answered the most important questions of who am I and is this what I truly want to do.
Whenever someone wants to start a business, they ask their friends and professionals what they should do. The standard answer is always, ‘You need a business plan’. Really, do you? If I do, what is it and how do I proceed?
