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About the SBDC
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Why Write a Business Plan ? Writing a business plan is difficult and time
consuming and you may be tempted to farm it out to someone else. In a word: Don't. Your
business plan not only provides you with a way of explaining your business to others and a
road map of your future, but the act of writing it will help you to clarify your ideas.
Your business consultant from the University of Scranton Small Business Development Center
will work with you to guide you through the process of writing your own plan. Remember, most businesses don't plan to fail, they fail to plan. So first off, ask yourself: Is there a need for this type of business? Just because you've never seen a business like
the one you want to open doesn't mean it's a niche waiting to be filled. Could be you've
got an idea without a market. If you can't find any similar businesses in your area, you
might question whether your idea is in the right place at the right time.
Can I afford to start this business? It takes money to start a business and, unless
you have a rich relative ready to finance you, that money isn't always easy to come by. A good rule of thumb if your looking for financing to start your business is to have 30% of the total project cost in liquid assets. Banks typically will only finance 70% of a new project cost, and they will want collateral for that amount. Because it is a new business it is considered risky, so banks will want to see that you are willing to take a risk just as they are. The most import thing to remember when attempting to finance your business is you will be required to have a good credit history. Smart entrepreneurs open businesses they already
have some expertise in. This doesn't mean, however, you have to open a business identical
to the job you want to quit. Perhaps you are passionate about a hobby that would lend
itself to a small business. (A wood-working shop? A fishing guide service? Could you build
a better something or other than already exists for your hobby?)
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