plan a realistic business

Most people when they are dreaming up a business decide that not only are they going to be the biggest and the best but also that their business will build up to be worth millions of dollars within just  a few years.

You’ve only got to watch the BBC2 programme “Dragons’ Den” to realise that most people have unrealistic goals for their business and their valuations are worth virtually nothing.

When you start off, generally you have an idea and… yourself. Sometimes you may have prototype products and some tentative orders, but this does not mean you have a track record, a brand or thousands of customers. This comes with time.

So just step back and see what you need to undertake to achieve your goals.

Break your objectives down to small chunks. For example, if you want to make £120,000 in year one, that’s £10,000 per month or £2,500 per week or £500 per day. So if you product has a £10 profit you need to sell 50 products PER DAY for the whole year.

Once you have broken your objectives down to the daily targets you’ll understand more of what you need for your business. You’ll know what you need to do to plan a realistic business for the longer term.