Is it really a business or just a good idea? Your business plan will tell you!

AM Total Business Solutions Ltd - www.angelarmorris.com

By Angela Morris

Is it really a business or just a good idea? Your business plan will tell you!

Is it a business

One of the easy ways to find out if you are running a business or a hobby is not to ask everyone what they think, instead take a look at your business plan.

You can then ask yourself a few simple questions.  Such as:

      Am I delivering my product/service for commercial reasons?

      Do I have clear charging structure for my product/services ?

      Am I regularly undertaking or making products and/or delivering services?

      Is my service/product planned, organised, distributed and carried on in a business-like manner?

      Is there is a natural (organic) demand for my product/services?

If you answer yes to more than two of these questions, it would be reasonable to assume that you are operating a business.

The next important question is:

Are you being paid for what you do or are you giving your time effort and energy just because you love what you do? Even if you charge, you need to calculate how much time is spent on a project or product so you don’t end up working for £1.00 and hour or less!

Things to consider: As an example; if someone commissions you to design a logo for them and they continually want to discuss it, change it, modify it etc. If you have spent a total of 25 hours talking to them, without factoring in the price of consultancy, you may well find yourself out of pocket!

Your business plan will help to keep you focused on your true objectives. Seeing your vision in black and white has a great impact on your approach to doing business.

If you have a well designed business plan, you can use it to keep your business on track. If you do not have one it may help you to put one in place. Why? Because….

Life’s too short!

Further Reading

Further reading

The importance of having a Business Plan

What a business plan can tell you

Do you really need a business plan?

 

Life's Too Short - by Angela R Morris

Life’s Too Short (So handle your business) An ebook- by Angela R Morris