Communities, as well as people, are subject to fads, and your idea may be yesterday s fad. Not unless it works by itself, goes up in value every year, and produces a positive cash-flow without much management. Under these circumstances it is largely a question of economic strength between labor and capital, and if labor is well-organized, alert, and able to drive a good bargain, then wages will be high; otherwise they will be low. Finally, the adequate combination of roles and interfaces depends on the priorities and capabilities of the various suppliers.

A lazy person's guide to Strategy

What economic forces should drive your decision? Brand equity is the additional value that a brand name adds to an otherwise equivalent good or service, allowing the company to charge a higher price. If you put too much detail into your plan, you run the risk of overburdening anybody who reads it with irrelevant, obscuring detail. Equity is the value of a business, investment, or property net of all amounts owed against it (payables, mortgages, liens, loans or claims).

Maintain an ongoing presence

For example, a hotel pays the same salary to a desk clerk whether one or ten guests register in an evening. All businesses have similar concerns and responsibilities, including marketing, research, development, purchasing, production, management, accounting, human resources, and customer service. Get rid of all the equipment that actually costs you more money to own than you'll get back from your production or operation. Loan covenants, however, may require you to do all sorts of things, from setting a minimum amount of working capital you must maintain to prohibiting you from making certain purchases or signing leases without approval from the bank.

No more romanticizing about how cool it is to be an entrepreneur

One drawback to using excerpts of a business plan to help inform and manage your employees is that some people won t understand it, especially taken out of context. Don t show one set of numbers to a banker you re trying to borrow money from and another to a partner you re trying to lure on board. As the leader, you are 100 percent responsible for everything: sales, profits, growth, quality, customer service, organization, people, and management. When you re asking yourself whether the numbers add up, keep the needs of your business and your business partners in mind.

Fast-Track Your Investors

The business is run by the systems'not the owner. People want to relate to Peyton and share his aura, if only obliquely. Always get your customers to pay you upfront, whether they are individuals or other companies. If you don t mention the subject, some plan readers will assume all is hunky-dory.

Do you feel confident in Customer Relationship Management

Doing the work or selling your products and services is important, but calculating accurate direct costs is necessary to make a profit. I am not in business to be liked or famous. These must not exist in a plan ready for presentation. Some of the resources and operations that a business requires will be owned or otherwise controlled by that business.