Despite having a great business idea for a new product or cutting edge service, many aspiring small business owners find themselves asking, ‘Am I ready?’ Considering just how much there is to accomplish when launching any business—protecting your idea, figuring out the proper compliance and licensing, getting the right office space, structuring, etc.—it’s a perfectly logical question. Before you get overwhelmed, take a step back and remember, ‘These questions are what a business plan is for.’ A well-crafted business idea is the blueprint that guides your actions and prepares you for unforeseen contingencies. When done thoroughly, it will save you a lot of hassle as you work to make your dreams a reality.
As Luxelab founder David Abrams explains below, none of his LA-based specialty hair salons would exist if it weren’t for his meticulous approach to business planning. His latest venture with his partner, Jason Lara, is the Chroma Color Bar, a fusion of an express colour bar and a high concept, specialised full service salon. When it came to Chroma’s conception, David explains that he was as specific as possible when crafting their plan, and advises other small business owners to do the same. Calculating details such as your interest rates, budget amounts and projected revenue, David says, are essential building blocks to any solid business idea.
As David attests, the goal of a proper business idea is to be way more detail-oriented than you think is necessary. This way, you will have a plan that is as multidimensional as possible. The more you troubleshoot your plan from all angles, the less likely you are to run into unexpected surprises and obstacles as you launch your business. To help get you started, here are the seven elements your business plan needs to set your new business up for success.