Mike McNeely’s, Business Plan Example

What important items are missing from Mike’s plans?

An important item that is missing in Mike’s business plan is financing. Although Mike has some savings and expects his uncle to lend him some money, it is important for him to determine the amount of capital that is needed to start the business and to keep it running until it is profitable. By identifying the initial costs, Mike will be able to determine if additional funds will be required, which can be sourced from financial institutions.

Another missing item in the plan is his knowledge and expertise in running a small business. Mike is an experienced mechanic, but running the business is another specialty. He will need to determine if he has knowledge on personnel management, marketing and bookkeeping. Lack of this knowledge may limit his ability to sustain the business and he can make mistakes when dealing with dealers and competitors.

Laws and regulation governing small businesses in his locality is another missing item. Such regulations include business registration, workforce details and compliance with taxation. It is important for Mike to be aware of these laws to avoid legal problems.

What steps can Mike take to ensure success if he starts his own business?

Starting a business is one thing and sustaining it another. In order to sustain his business, Mike needs to start small. It is important to avoid excess expenses at the beginning because for a business such as an auto repair shop, it may take some time before it becomes profitable. Starting small ensures that one is able to recover in case they make mistakes during the initial stages.

Secondly, it is important to develop positive employee relationships. Having good employee relationship ensures that employees are motivated, which in turn increases their productivity.

It is also important to employee the right people. Having qualifications is not important, but other attributes such as commitment, passion and motivation for the job guarantees success of the business.

Lastly, Mike should learn to pay what he owes on time. Stalling on debts can destroy his reputation with suppliers and create problems with the internal revenue service.