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11 STEPS TO SETTING UP AS A SOLE TRADER (SELF-EMPLOYED) - Post 2

ITEMS TO DO BEFORE TRADING

1. CREATE A BUSINESS PLAN

You are probably thinking why do I need a business plan it’s my business I know what I my doing, which may be true but do you require finance to set up your business i.e. to purchase equipment for your business be it stock or a vehicle.

Or put another way sketch out a floor plan of your ideal house, did you get it right first time? Could you afford to build it now? What would be its ideal location? Who would build it? How long will it take to build? Could you build it in phases? What materials would you use to build it? Where would you purchase these materials?

As you can see one question leads on to another each important as the previous question, and each question poses its own problems at the relevant time but all part of the overall project. That is why you need a business plan to iron out as many issues before starting to trade in your business as any unforeseen problems could cost you time and money. Sketching out your floor plan, changing your mind evolving your plan is the same as a business plan. Even when you are trading your business will be evolving certain items may not be selling but something you did not expect to sell in volume is, this could lead you into a new aspect of your business.

Other reasons for a business plan:

· Prove you are serious

· Set out business milestones

· Show you know your competition and where your business fits in the marketplace

· Show you know your potential customers i.e. their demographics

· Express assumptions

· Show your revenue income

· Show when you need financial assistance

· Confirm this is the right business opportunity

· Document your marketing plan

· Forecast when you require additional resources

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