Financing Your Small Business

Business Strategy, Planning, and Feasibility Analysis

T Strategy

T Developing Strategy t Business Plan t Feasibility Analysis t Structuring Your Business Plan t Consultants vs. Do-It-Yourself t What the Experts Say t Summary

This chapter addresses the need to develop a business strategy—and even­tually a business plan—to enhance your chances of receiving financing. In some cases, a comprehensive business strategy, properly articulated, will be the difference between obtaining financing or not.

Strategy

A strategy is a plan of action specifically designed to achieve a predeter­mined goal. Business strategy requires an executive approach to defining and solving the marketing, design, production, and financial problems that may prevent you from achieving your goal. However, creating your basic strategies may not require a time-consuming and arduous process, just as communicating your strategy does not require writing a very lengthy and complex book.

Business Strategy, Planning, and Feasibility AnalysisRecognizing Success: You know you have

Created and communicated effective strategies when

Your audience understands three things.

1. The current state of your business—your origin.

2. Your long-term (typically five-year) goals for the busi - ness—your destination.

3. How you will travel from origin to destination and solve the problems you know you will encounter along the way.

Financing Your Small Business

Limited Liability Company Formation Documents

If, after consultation with your professional team, you decide to form a lim­ited liability company, you will need to file Articles of Organization with the state and draft an internal …

Corporation Formation Documents

After consulting with your professionals, you will most likely need to form an entity to raise capital. Most entrepreneurs will form either a corporation or a limited liability company. This …

Business Plan

As part of your business strategy, planning, and feasibility analysis, you will commit your plan to paper. The document produced is typically called a business plan. The purpose of a …

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