Don't let these stop you from having a business plan for success!
By Terri Zwierzynski

A recent study of 29,000 business startups noted that 26,000 of them failed. Of those failures, 67% had no written business plan. Think that's a coincidence?

Here's the top 10 myths Solo Entrepreneurs often have about business plans—usually, the reasons why they don't have one. De-bunk the myths, and see how having a business plan for your solo business, can actually be easy and fun--and can jumpstart your success!


1. Myth: I don't need a business plan--it's just me!

Starting a business without a plan is like taking a trip in a foreign country without a map. You might have a lot of fun along the way, and meet a lot of friends, but you are likely to end up at a very different place than you originally set out for—and you might have to phone home for funds for your return ticket.

Solo Entrepreneur Reality: Successful Solo Entrepreneurs know that the exercise of creating a business plan, really helps them think through all the critical aspects of running a business, make better business decisions, and get to profitability sooner.


2. Myth: I have to buy business plan software before I can start.

Business plan software comes in many shapes and sizes, and prices. Many are more geared at small and growing businesses with employees.

Solo Entrepreneur Reality: Business plan software can be helpful—but it’s not required. Software is more likely to help if you have a more traditional type business, like a restaurant or a typical consulting business.


3. Myth: I need to hire a consultant to write my business plan.

Consultants are an expensive way to have your business plan written.

Solo Entrepreneur Reality: Your business IS you—and you need to be intimately involved with the creation of your business plan. A better strategy, if you think you need professional help, is to hire a coach or mentor—someone who can guide you in what you need to do, not do it for you.


4. Myth: The business plan templates I’ve seen have all these complex-sounding sections to them—I guess I need all those?

The only time you need to follow a specific outline is if you are looking for funding.

Solo Entrepreneur Reality: Your business plan needs to answer ten basic questions—that’s it! Don’t make things more complicated than necessary.


5. Myth: My business plan needs to be perfect before I can start my business.

If you wait for everything to be perfectly detailed, you may never start.

Solo Entrepreneur Reality: If you have at least a first draft that answers those ten basic questions, you are ready to launch your business! Make your business plan a living, evolving document. In the startup stages, review and update your plan every 2-3 months. As you grow and stabilize, you can slow down the review cycle to every 6-12 months. All business plans should be reviewed and updated at least once a year.


6. Myth: I have to do everything I say I’m going to do in my business plan, or I’m a failure.

Many Solo Entrepreneurs never start because of this myth—which leaves them feeling that the success of their future business suddenly rides on each stroke of the pen or click of the keyboard!

Solo Entrepreneur Reality: Think of your business plan as a roadmap for a trip. Expect to take some detours for road construction. Be flexible enough to take some exciting, unplanned side trips. And don’t be surprised if instead of visiting Mount Rushmore, you decide to go to Yellowstone, if that turns out to meet your vacation goals better!


7. Myth: A good business plan has a nice cover, is at least 40 pages long, must be typed and double-spaced…

Business plans intended for investors, such as a bank or venture capitalist, must meet certain requirements that such investors expect.

Solo Entrepreneur Reality: As a Solo Entrepreneur, your business plan need only satisfy YOU. It might be scribbled on a napkin, on sticky notes on your wall, or consist of a collage of pictures and captions. It might be all in one document or scattered among several mediums. As long as you know it in your head and heart without having to look at it, and it is easily accessible to you when you have doubts, that’s all that is necessary.


8. Myth: I don’t need a loan—so I don’t need a business plan.

YOU are the investor in your business—and would you invest in the stock of some company without seeing a prospectus?

Solo Entrepreneur Reality: Seeing your plan in black and white (or color, if you prefer!), can give a whole new view on the financial viability of your business. If “doing the numbers” seems overwhelming, remember you don’t need fancy spreadsheets. Just lay out a budget that shows where all the money is coming from (and going), and have an accountant review it for additional perspective.


9. Myth: My business plan is in my head—that’s good enough.

I don’t know about you, but I sometimes can’t remember what I planned yesterday to do tomorrow, if I don’t write it down!

Solo Entrepreneur Reality: There is a real power in writing down your plans. Some schools of thought advocate that the act of writing a plan down triggers our subconscious to start working on how to manifest that plan. And, of course, it’s a lot easier to remember when you have it in front of you. And a lot easier to share and get feedback from your non-mind reading supporters.


10. Myth: Friends and family are the best sources of feedback and advice on my business plan.

If your brother is an accountant and your best friend is a market research expert, then this might be true.

Solo Entrepreneur Reality: As well meaning as our friends and family can often be, they just aren’t the best way to get honest, objective guidance. Instead, seek out folks that have specific knowledge that will help you, are willing to be candid with you, and that have a genuine interest in helping you succeed. A business coach is one resource to consider!


Copyright 2004, Accel Innovation, Inc.
Find more articles like this at Solo-E.com – Keeping Solo Entrepreneurs Juiced in Business and in Life. Our team of Solo Entrepreneurs are comprised of small business experts who support others in finding business success with the flexibility and freedom to have a life, too. Network with other freelancers, self-employed and Solo Entrepreneurs in our forums, enjoy our articles and newsletter, and find other online training opportunities.*

About the Author
Terri Zwierzynski is a coach to small business owners and Solo Entrepreneurs. She is also the CEI (Conductor of Extraordinary Ideas) at Solo-E.com and the author of 136 Ways To Market Your Small Business. Terri is an MBA honors graduate from UNC-Chapel Hill. Terri has been coaching for over 10 years in a variety of settings, including 6 years as a senior-level coach and consultant for a Fortune 500 company. She opened her private coaching practice in 2001. You can reach Terri at www.FastLaneDreams.com.

When two people join forces, there's a certain synergy that takes place, that's why many ebusiness folks are seeking out joint ventures. What is a joint venture (JV for short) you ask? Basically it's when you agree to form a partnership and jointly promote someone.

== BENEFITS OF JV ==
Here are some benefits you can realize from forming joint venture.

1. EXPOSURE: You can instantly "double" the exposure of your products and services by tapping into each other's built-in audiences, business relationships, and mail lists.

2. MENTORING: As partners, you'll form a powerful relationship and learn from one another. As you create plans together, each partner's specialties and knowledge will complement the others.

3. FORM A DYNAMIC DUO: Being associated with other highly successful business people enhances your image and reputation. Look at the fantastic relationships that Jim Daniels, Rick Beneteau and other successful marketers have built. They are examples of people who truly are putting the power of partnerships to work!

== TIPS FOR BUILDING A SUCCESSFUL RELATIONSHIP ==
Are two heads better than one? Well, yes and no... You see, relationships can be sweet or they can quickly turn sour. Like a good marriage, a joint venture relationship needs to be built on a solid foundation of trust and friendship. Partnerships need nurturing, loyalty, and faithfulness from both parties. It's not a one way street. Partners need to genuinely care about and trust each other.

1. BE HONEST AND SINCERE: It all starts with the proposal. If you don't write a strong proposal, the future of your JV will quickly be decided with a "click". An impersonal, hard sell letter will turn your prospect off. Instead, write a personalized proposal including what you both could bring to the project and what you both can expect of a joint venture partnership.

2. KNOW YOUR POTENTIAL PARTNER: Take time to get familiar with their business, their web site, and ezine. This way can tell your partner what you like about their business and how you foresee them working together. You may even consider making a phone call to say hello and "meet" each other first. The few joint venture letters I actually consider are from folks who take time to know me and my business, and speak honestly about why and how we could work together.

3. WHAT's IN IT FOR ME? Explain up front how working together would be mutually beneficial to both of you. If a joint venture proposal screams "me, me, me" then why would you consider it? Instead, take time to think about how you could help your potential partner. Clearly state the potential benefits to your partner. Will they gain instant access to 40,000 extra subscribers? Will you endorse your partner's products? How can you grow your partner's business?

4. RESPECT YOUR PARTNER: What you do reflects on the reputation of your partner. Conduct yourself with integrity and professionalism. If I am promoting "Joe Schmo's" product, I expect Joe to treat my customers with respect and offer outstanding customer service. If Joe doesn't answer his emails, offers bad customer support, or his product doesn't "work" – then that reflects badly on his partner's reputation.

== WAYS TO WORK TOGETHER ==
Here are a few ideas on how partners can work together to promote each other.

1. CROSS PROMOTION: When you endorse each other's products, it's important that you try and believe in the product. A personal testimonial is a powerful sales tool. Partner's can agree to swap ads or articles in each other's ezines or send promotional endorsements to each other's email lists.

2. BUNDLING: Another JV idea is to bundle your packages together. Bundling works best when the product complements yours. But, be careful that their product doesn't overshadow yours. Also, don't pile on so many bonuses that the offer becomes unbelievable. An offer too good to be true may raise doubts in the consumer's mind.

3. PRODUCT SWAP: Agree to "swap" products with your partner and offer them as a prize. Give the prize away in a contest or do a random drawing to one lucky subscriber.

4. JOIN FORCES AS A VIRTUAL COMPANY: Partner with companies who offer services related to yours. Your customers will enjoy the convenience of one-stop-shopping. By cross promoting each other, you'll both gain new customers. Don't limit yourself to partners who are close to you geographically. With fax and email your associates can be located anywhere in the world.

== IN SUMMARY ==
Take a minute to look up from your busy desktop and dream about who you would like to work with! Open up your mind to the possibilities. The internet makes the world a small place. You could potentially partner with anyone, anywhere! Get to work writing a smashing proposal and you too could be tapping into the power of partnerships to promote your business.

About The Author:
Kristie Tamsevicius, is the author of "I Love My Life: A Mom's Guide to Working from Home"! Thousands of aspiring entrepreneurs have used her step-by-step home business system to earn money working from home. Get a free ecourse Home Business Success Secrets at http://www.webmomz.com/ilovemylife1.htm

The Seven C's: Danger Signs not to be Ignored
 
When Harry teamed up with Joe, everyone thought it was a business match made in heaven. Both loved the clothing business. Harry was a natural salesman with good design sense and Joe was a shrewd buyer and financial whiz. Together they opened a clothing store that showed every sign of becoming a franchise.
 
So why after just a year, when the flagship store was a big hit were they struggling with a costly and acrimonious divorce? Why were they talking about bankruptcy instead of the fall line -- when they talked at all?
 
One of the main reasons was a communications breakdown, which is all too common with partnerships. Few, however ever pay heed until it grows into a monster. The very things that made Harry and Joe such a perfect complement to each other were now tearing the business apart. It can happen in any partnership if great care is not taken. And here is where a business partnership coach comes in.
 
There are a number of danger signs that a business partnership may be about to crash and burn. Harry and Joe missed all of them. Visions that seemed similar differed when money was on the line. For instance Joe wanted a strong foundation and measured growth, while wheeling-dealing Harry wanted to strike hard while the iron was hot. As is typical in many partnerships, Joe needed a flamboyant frontman just as much as Harry needed someone steady in the back room, but their contrasting work styles bred irritation then conflict. The very nature of a partnership means that things can quickly get personal even in the most professional relationship.
 
Have you missed some or all of the warning signs that have spelled the end of business matches?
 
THE “SEVEN Cs”: PARTNERSHIP DANGER SIGNS
 
1. Communications Breakdown  
2. Competitive, not complementary interaction  
3. Conflict becoming the norm  
4. Cumulative money problems  
5. Control issues  
6. Changing vision  
7. Crisis management impaired by personal issues
 
Coaching is the answer here, but if your partnership has many or all of the Seven Cs, it may be too late to save.
 
The business partnership relationship is similar to the one between spouses: practical, emotional, financial, psychological, built on trust, and the list goes on. The problems tend to be the same as well: not appreciated, not gratified, equality issues, expectations not met, unfair division of labor, something happened to create distrust, etc.
 
Traditional family dynamics play a role in any business partnership but their potentially negative effects simply must be contained if goals are to be achieved and the business is to succeed.
 
No matter how well suited partners may be in goals, ideas, and dreams, there will always be differences which can turn into destructive forces. These differences may revolve not only around styles, but views of long and short term goals, equity issues in various arenas such as division of labor, financial reward, variations in risk tolerance, approaches to managing and marketing, inclusion of family members, relationships with other staff members, personality or philosophical approaches.
 
Needless to say, this not only makes for frazzled partners, but also plays havoc with profits. If you are in a partnership and want to avoid becoming a statistic in the future, consider partnership coaching.
 
Dorene Lehavi, Ph.D. is principal of Next Level Business and Professional Coaching. She coaches Professionals and Business Partners and teaches teleclasses on techniques to break through barriers to the next level. Dr. Lehavi offers a complimentary coaching session so you can experience how coaching can work for you. Contact Dr. Lehavi at DL@CoachingforYourNextLevel.com or on the web at http://www.CoachingforYourNextLevel.com Subscribe to Mastering Your Next Level monthly e-newsletter at coachingforyournextlevel.com/newsletter.html

by Dorene Lehavi
 
An ongoing series of articles exploring the seven critical areas that can indicate a partnership is in trouble.
 
COMMUNICATION BREAKDOWN
 
The "Seven Cs" are the danger signs that indicate your business partnership, or any partnership for that matter, is in trouble.
 
First, and most important, in my view, is the issue of Communication Breakdown.
 
Although my list of Seven C's refers to the danger signs that partnerships are in trouble, the fact is that communication breakdowns abound in all relationships. Sometimes they are serious leading to downward spiraling such as in business partnerships and marriages where the stats of breakup are astronomical. Other times they are simple miscommunications of lesser impact that don't negatively affect the relationship.
 
As an experienced listener, sometimes I smile when I happen to hear people answer the question they think they heard and be replied to as if they answered the question that was asked. A recipe for trouble. Then the conversation twists and turns and no one is the wiser (but me!).
 
What can you do to avoid these breakdowns?
 
First and foremost be committed to open listening. Honestly, you don't have to be right all the time. Others have worthwhile opinions too. Don't set yourself up to judge. Put your agenda aside. You can always embrace it later.  Allow the possibility that you have something to learn from someone else. Often what happens is that you may reject the idea expressed but it triggers yet another idea and another. Before you know it you've both expanded your options and have created new and exciting possibilities. Or you have respectfully listened to each other's viewpoints and feelings or cleared the air about something which needed to occur before moving on to the business itself.
 
In partnerships there is an additional vital element for good communication. That is a commitment to the relationship no matter what the disagreements. It goes without saying that trust is a given.
 
Now that you have the mindset, you can use the following techniques.
 
* Be open and honest with your declarations.
* Repeat back what you think you heard for clarification.
* Ask questions to be sure. Did you mean...? Are you saying....? Did I make myself clear? Can I/you say that another way? Did I hurt your feelings? Have I offended you? That's a great idea! Thank you for pointing that out. I appreciate you saying that. I never thought of it that way. That's brilliant!
 
When communication is clear, you've taken the most important step to preserve your partnership and relationships.
 
Dorene Lehavi, Ph.D. is principal of Next Level Business and Professional Coaching. She coaches Professionals and Business Partners and teaches teleclasses on techniques to break through barriers to the next level.  Dr. Lehavi offers a complimentary coaching session so you can experience how coaching can work for you. Contact Dr. Lehavi at Dorene@CoachingforYourNextLevel.com or on the web at Http://www.CoachingforYourNextLevel.com. Subscribe to Mastering Your Next Level monthly e-newsletter at http://www.coachingforyournextlevel.com/newsletter.html
 


 

By Dorene Lehavi, Ph.D.

A series of articles exploring the seven critical areas that can indicate a partnership is in trouble. 
 
Competitive, Not Complementary Action
 
James  Carville and Mary Matlin are public relations spokespeople for the Democratic and Republican parties, respectively.  They are each articulate, sharp  and feisty. Sparks fly when they debate in favor of their parties, so much so that they seem like arch enemies who couldn't possibly exchange a friendly word. I remember the shock reaction I had (how many years ago was it?) hearing that they were getting married.  I pictured a contentious loud fighting household.
 
Recently I saw the two of them on television talking about their private lives.  One never knows for sure the truth about public figures or anyone else for that matter, but if taken at face value, they have a solid marriage, children and good family life.  They displayed mellowness, respect and total togetherness.  It was obvious that the party competitiveness was left outside of the house and what was brought inside was love, goal sharing, and family first.
 
Businesses run by partners are very much like marriages.  If the partners are in competition with each other they are creating a lot of damage.  First of all, their relationship is limited because there cannot be complete openness between competitors. The ultimate goal of the success of the business is undermined and lost in the morass of the need to win over each other.  If the competition is obvious to others and it usually is, it creates a situation of two camps  where employees, directors and suppliers choose sides.
 
If the business is comprised of family members, the situation can be even more intense and damaging because the negative effects permeate to personal lives and to family members who may not even be directly involved in the business.
 
As a coach, I help the partners focus on their goal for the business by examining the harm caused by destructive self centered behavior.  The need to compete and win sometimes is an unresolved need to play out old family patterns even if the partners are not members of the same family.
 
The goal of coaching is not to heal old patterns, but rather to contain them and to create new patterns of satisfaction that directly relate to business success. If the situation is so entrenched, therapy may be recommended as part of the solution.  However, usually coaching techniques which direct the parties to clarify and satisfy needs in productive ways in order to focus on the business, such as Carville and Matlin focus on their marriage, is the usual path that can be implemented.
 
Dorene Lehavi, Ph.D. is principal of Next Level Business and Professional Coaching. She coaches Professionals and Business Partners and teaches teleclasses on techniques to break through barriers to the next level.  Dr. Lehavi offers a complimentary coaching session so you can experience how coaching can work for you. Contact Dr. Lehavi at Dorene@CoachingforYourNextLevel.com or on the web at Http://www.CoachingforYourNextLevel.com. Subscribe to Mastering Your Next Level monthly e-newsletter at http://www.coachingforyournextlevel.com/newsletter.html

 

By Dorene Lehavi

A series of articles exploring the seven critical areas that can indicate a partnership is in trouble.
 
Conflict Becoming the Norm – Part 1
 
Dr. Dean Ornish, noted cardiologist, says the greatest cause of disease is the stress that comes from conflict. Conflict is bad for your health, your personal life and definitely bad for your business.
 
When disagreements have reached the stage of conflict, emotions have overcome the issue. At this point no one is thinking clearly or speaking truthfully about the original problem. It becomes all about winning.  How useful is that?
 
You can win the battle and lose a whole lot more. Conflict becomes a nail in the coffin of your marriage, or in your business partnership. Though you may win in court, you often lose in life. This is a major component of the scenario that accounts for the high rate of divorce in marriage and even higher rate of dissolution of business partnerships.
 
Even if conflict doesn't reach this dramatic result, living with conflict is an unhappy, unhealthy situation. Not only does it cause you misery, but it is contagious. Employees, clients and family members feel the tension. They may be taking sides even without realizing the unspoken details of the issue. You and your partner avoid meeting, may deteriorate into a yelling match when you do meet, or live in silence avoiding addressing other important issues as well. This is not the scenario that inspires you to get out of bed in the morning.
 
The best solution is prevention. Resolve things at the disagreement level before they become conflicts. If the two of you can't get to resolution where you both feel like winners, call in a coach. Actually, my clients find that a monthly meeting is a great preventative and also teaches them the tools needed to handle most situations on their own.
 
Now is the time to remember that there were good reasons you chose your partner. If you were honest and sincere in your initial evaluation and desire to succeed, it's helpful to keep that in mind and if things have gotten out of hand, hire an outside expert who can help you get back to that place of harmony and mutual respect.
 
The first step in resolving conflict is to agree to do so and to agree on the ultimate goal which is greater than each of you as individuals. When you are seriously committed to the same outcome things can usually work out. When you've reached this point, a third party, non-biased expert listener and coach is not just desirable, but essential to direct the discussion and keep emotions at bay.

Dorene Lehavi, Ph.D. is principal of Next Level Business and Professional Coaching. She coaches Professionals and Business Partners and teaches teleclasses on techniques to break through barriers to the next level.  Dr. Lehavi offers a complimentary coaching session so you can experience how coaching can work for you. Contact Dr. Lehavi at Dorene@CoachingforYourNextLevel.com or on the web at Http://www.CoachingforYourNextLevel.com. Subscribe to Mastering Your Next Level monthly e-newsletter at http://www.coachingforyournextlevel.com/newsletter.html