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  • Will Small Business Save the Economy?

    You must have a strategy. An entrepreneur’s dreams for a successful business venture require strategic planning to turn them into reality. If you don’t have a strategic plan, create one before you make another mission-critical decision.

    Small businesses are considered the backbone of the American economy and with national leaders saying the economic revival begins with small firms and their entrepreneurs, a well executed business strategy has never been more important.

    In past recessions, independent smaller businesses helped fuel economic recoveries. But tightened credit, government regulatory impediments and a lack of Federal support for Community Banks – the principal source of capital and financial support for small business – has many modern day entrepreneurs fearful of what the future may hold! Proper planning and a well-executed business strategic plan for growing their business, though, can clear the way for a smaller enterprise to expand and take reasonable risks that will lead to an improved bottom line.

    Most people are not aware that the American small business first year success rate is 20% and has been unchanged, decade after decade, according to the U.S. Small business Administration. And for those enterprises surviving the first year business obstacle course, only 20% of them make it to the third to fifth year winners circle. But, in spite of this dismal record, a miracle continuously occurs year after year. Small business generates approximately 72% of all new jobs in America, every year! Small business is the job generator in our country. The challenge facing American entrepreneurs is to increase this job producing success rate!

    “How” to do it, is the real challenge. This challenge faced me personally, in 1969, when I left big business marketing management and became an entrepreneur. The tools I had available to me in a big business setting were; staff, a budget ($$$), giant computers, extensive and expensive software, huge data banks of marketing, sales, and consumer preference surveys, all were non-existent to a start-up entrepreneur!

    Searching for texts on strategic planning revealed (the ones I discovered anyway) were aimed at big business and were focused at telling the reader ‘what’ to do, not ‘how’ to do it! As a result, I created a simplified strategic business planning model I used to create and grow eleven successful small businesses, most generating income in the six figure range, one in the seven figure range and one at $136,000,000. What I learned from the experience was “the heart and soul of any small business is its strategic business plan”, and a formal strategic plan increases an entrepreneur’s odds for success. I have observed coaching entrepreneurs that every small business failure is a direct result of insufficient planning and the faulty decision making that follows, but it doesn’t have to be that way.

    Continue reading at http://www.nmoa.org/news/tips/ournationseconomicrecovery.asp

    Filed Under: Startup/Entrepreneur

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