If you are tired of others profiting from your hard work, it may be time to consider becoming your own boss and reap the complete rewards of your hard work.

If you are considering starting your own business, the first critical step is determining what business you want to be in.  Remember that although loving what you do is great, what you love may not be as profitable as what you like.

The great American dream

The great American dream is to start with nothing, work hard and build an idea into a fortune. It happens every day and it can definitely happen for you if you are willing to do what it takes. If you dream of becoming your own boss, then you will want to create a financial business plan. A business plan will let you see all of the costs involved in your dream and whether or not it is feasible for it to become a reality.  When you initially start your business, there may be a period where you are not generating any revenue.  Nonetheless, you will still have to pay out your monthly business expenses.  Therefore, the key is to develop a financial plan that will keep you out of debt during the ramp-up phase of your business. 

Set a date that you want to be able to start your own business, perhaps one to five years down the road. During this time period, budget intelligently, save money, and invest your savings and do your homework.  You will then be able to transition smoothly to building the foundations of your own business. 

Do what you know or at least what you like

As your investments are busy making the money that will allow you to become your own boss, it is crucial that you begin making decisions for your business.

A great initial step to determining your business focus is to create a broad list of what you enjoy doing, as well as what skills you have.  For example, if you enjoy cooking, you can then brainstorm different business models, such as opening catering business or publishing a recipe book. If you already have a profession or trade, consider opening your own shop and doing what you know. A business is far more likely to succeed if you are specialized in that field.  An individual who is great with computers will not be nearly as successful if he or she opens a retail clothing store instead of an IT consulting service.  Choose a business in a field in which you have expertise.  

Creating a detailed business plan

Once you have decided what you niche is, you will need to develop your business plan. A business plan explores the feasibility of a project and outlines the specific components of resources needed, competition, and scalability.  The more detailed your business plan is, the higher the probability its success. If you are looking for bank or SBA loans, then a strong business plan is critical.  Even if you are funding the venture with your own financial backing, it is still important to map out the details of your business operations.  Believe it or not, Microsoft Excel has a couple of excellent templates ready for you to adapt to your own business plan.

A typical business plan includes the following information presented in this order:

• Executive Summary:  First impressions are very important, and in the world of business, the executive summary determines whether or not the bank or venture capitalist reads the rest of your business plan.  Make sure that your executive summary is well developed, clear, and concise. 

• Table of Contents:   This demonstrates your organization, and it is the last portion of the business plan to be completed.

• Business Description:  This section is a general description of the business and what the demand for it is. Here is where you discuss how you came to pick this business and why it is a good pick for you and what competitive advantages you might bring with it.  However, it is important to remain factual and on point, as banks and venture capitalists have read enough business plans to differentiate the facts from fiction.

• Service Details:  Here you introduce your product or service in intricate detail.  If you will offer more than one line of product, each should be discussed and the contribution each brings to the financial success of the venture.

• Industry Analysis:  This is one of the most important aspects of your business plan, as it not only demonstrates the earning potential of your product or service, but also your business acumen.  Banks and venture capitalists want to see your business knowledge in action, and by providing them with compelling, insightful information regarding the market and your competitors, you strengthen your case for funding.  The more research you can include in this section, the better it bodes for your funding and future success.  This research can also help you understand how to position your product or service against the competition. 

• Marketing Strategy:  This section outlines your marketing and advertising strategies to penetrate the industry, overcoming the existing competition.  You must discuss your target market and how you will reach them through your marketing plans. 

• Operations Plan:  In this portion, you discuss the foundations of your business operations, such as the manufacturing facilities, store fronts, employees, logistics, etc.

• Financial Plan:  The heart of the business plan, your financial analysis is crucial– both in terms of acquiring funding and getting your business off to a great start.  You must accurately estimate your project cash flow, profit and loss, sales forecasting, and balance sheet of assets and liabilities. 

• Management Team:  Most venture capitalists, along with banks, place a high value on the management team of a proposal.  In this section, you should highlight the relevant experience of your management team, along with inclusion of resumes.  You may be the management team initially.

• Exit Strategy:  For both yourself and potential investors, it is important to think to the future.  Once your business has been running successfully, what are your plans for the company?  Will you sell it through a merger or acquisition?  Will you bring the company to IPO?  Thinking to the future helps you keep track of your goals, and it also gives investors reassurance that they will eventually see the return of their capital. 

• Appendices:  All of your supplementary information, such as data sheets, press coverage, and marketing materials, are entered into the appendix.  The more relevant supporting information you can provide, the stronger your business plan is.  Also, any assumptions that you made with the financial projections or market need are typically included in the appendix along with a section explaining the risks associated with the venture.

The more organized and realistic your business plan is, the more prepared you will be when you go to execute it. If you dream of becoming your own boss, the reality begins today.  Select a realistic date and begin building the path that will bring you to the business of your dreams.