Willfully shortchanging lenders, investors, suppliers and employees, and swindling customers does not make a business owner smart. Just a deadbeat.
Financial planning—which can take the form of the annual operating plan and budget described earlier, or a rolling forecast of longer-term projections—is an essential part of managing any business.
Entrepreneurs: Have You Thought About How to Grant Ownership Interests and Incentives in Your New Venture?
No matter your area of commercial interest, sharing ownership with those who help you realize your goals is not only the right thing to do, it also makes good strategic sense.
Are business plans obsolete? Do prospective investors actually read these things, or are they more interested in your elevator pitch—you know, that idea-in-a-nutshell presentation that everyone says you have to have in order to attract the attention and investment capital you need?
Risks are intertwined with responsibilities. As you go through the process of identifying and guarding against all the things that could possibly go wrong, you can’t help but realize the weight of the responsibility you’ve undertaken.