Count on Facts, Not Ifs: Money and Profit in Your Business Story
In the brief story you write about your future business, determine to some extent your financial status and the method of securing capital. If the method is borrowing money, think about some factors in the initial story: How possible is it to borrow money, and to what extent can you count on it? How much can you borrow at most? How influential is the interest you have to pay for the loan on the expenses of starting your business? How much time do you need to repay the debt?
Define borrowing money in the initial story of your business precisely. A business can't be launched by possibilities or ifs and buts, and you must count on facts and what you have at your disposal to be able to make plans. Therefore, you should not start your business hoping that you can borrow money, unless you have become certain and all details have become clear to you.
In the story of your business, think about when you are going to become profitable. Are you going to generate revenue from the first day, or do you have to go through a certain period? Think about your products' pricing system and the profit you have considered for yourself.
Estimate the costs, incomes, and production rate using simple calculations. When looking at these simple calculations, you see how real things are and how much change is needed. If your business needs a physical place, think of its geographical location. Define what type of people your work team must include. Such a definition helps you determine the process of tasks, especially when you write an operational plan.
Also make clear whether companies, final customers or both are the target market. If your business is B2B, the practice is different from when it is B2C.