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Additional resources for Bankable Business Plans: Second Edition (Bankable Business Plans)
Do you require money for research and development to improve on your original toothpaste tube and paper clip construction? Do you need to hire an engineer to draw up accurate manufacturing designs? Should you patent your invention? Will you need to investigate federal safety standards for mousetraps? Should you allow time to test the materials for durability before you start manufacturing thousands of mousetraps? How many mousetraps do you plan to make at ﬁrst? The answers to these questions will become the budget line items in your list of startup costs for your business.
The answer is that virtually every study of business owners shows that making money, while an important ambition, is rarely the most compelling goal of an entrepreneur. For example, people in family-owned businesses frequently list spending time with their relatives and employing family members as their most important goals. Of course, your goals are unique to you. However, to establish them in your own mind, you need to do three things: 1. State your personal goals. They may be some of the ambitions listed here, or they may be issues such as having the opportunity to travel, work with children, or get away from incompetent bosses you’ve worked for in the past.
Keep in mind that investors have many options. They can buy very secure government bonds, or publicly traded stocks; they can 22 Action Step 1 purchase real estate, or invest in any number of large or small businesses other than your own. Entrepreneurs have an uphill struggle to attract investors, because these other options offer attractive returns and, probably, less risk. Investing in smaller businesses is chancier than buying stocks in large, publicly traded, well-established, and well-ﬁnanced companies with a long history of proﬁtability.