Issues Beyond the Plan

I have written this book to provide you with an overview of the issues that determine success or
failure in a small business. Experienced lenders, investors and entrepreneurs want a plan that
takes these issues into account. Of course, this book can’t cover everything. Here are some of the
key business components that are left out of this initial planning process.

1. Bookkeeping and Accounting

This book discusses the numbers and concepts you as the business owner need to open and
manage your small business. You have the responsibility to create bookkeeping and accounting
systems and make sure they function adequately. (Some suggestions for setting up a system are
contained in Chapter 6, Section D.)

One of the items generated by your accounting system will be a balance sheet. A balance sheet is
a snapshot at a particular moment in time that lists the money value of everything you own and
everything you owe to someone else.
2. Taxes
While there are a few mentions of tax issues throughout the book, most of the planning information doesn’t discuss how taxes will be calculated or paid. The book focuses its efforts on making a profit and a positive cash flow. If you make a profit, you’ll pay taxes and if you don’t make a profit, you’ll pay fewer taxes. A CPA or tax advisor can help you with tax strategies.

3. Securities Laws
If you plan to raise money by selling shares in a corporation or limited partnership, you’ll fall under state or federal securities regulations. You can, however, borrow money or take in a general partner without being affected by securities laws. A complete discussion of these issues is beyond the scope of this book. For now, take note that you must comply with securities regulations after you complete your plan and before you take any money into your business from selling shares or partnership interests.

4. Your Management Skill
This book shows you how to write a very good business plan and loan application. However, your
ultimate success rests on your ability to implement your plans—on your management skills. If you have any doubts about your management ability.

5. Issues Specific to Your Business
How successfully your business relates to the market, the business environment and the
competition may be affected by patents, franchises, foreign competition, location and the like. Of
necessity, this book focuses on principles common to all businesses and does not discuss the
specific items that distinguish your business from other businesses. For example, this book doesn’t discuss how to price your products to meet your competition; I assume that you have enough knowledge about your chosen business to answer that question.