Why One Should Love Business Plans

You have been out somewhere and had a great idea for generating some money or starting a business. We have all been there. What should you do next?

If your idea is to be anything more than just an idea you will have to test it. It is important to test each idea as potentially you can save yourself alot of time and money. A well tested idea is of a benefit to everybody involved. So how do you test your idea?

The first step is to write it down. Writing things down focuses the mind more clearly on what you are trying to achieve. Below is a step for step plan on how to test any new idea. If your idea can make it to the end of these questions then you may well be ready for stage two, a business.

1. Write the idea down in its pure simple form.

2. Go onto the internet and see if there are any related products or services that compete with your idea.

3. If the idea is serving a local area, check local newspapers and magazines to see if anyone is doing something similar.

4. Write your ideas down on paper so that you can present it in email or paper form to a small group of people related to the project.

5. Gather a small group of people who will benefit or help you and do a brain storming session. The objective of the brain storming session is to find faults in the plan and reasons not to do it. Not the other way around.

6. If your plan survives this far you are ready to build a prototype. A prototype can be a model of your idea or a process flow chart if it is a service. For example, if you are designing a new sort of gear system you are going to have build that either in model form of for real to see if it works and if there are any possible problems that may exist with it. If it is a service (a non physical object) than you will need to document the process flow including as much information as possible.

7. After you have done this, one will have established any potential problems and to see if the idea is still feasible. But you are not finished yet. A second round of group analyses is necessary to see if the idea still stacks up. If you succeed in this, you can pat your self on the back and start on your business plan.