Do As I Say - Not as I Pay

The Value of a Business Plan

In the Art of War, Sun-tzu (6th BC) wrote that, “One who, fully prepared, awaits the unprepared will be victorious” (p. 179). Sun-tzu theorized on military applications of his concepts, however, his ideas remain powerful tools of business today. As a former business owner, I can attest to the need to precisely plan any business prior to engaging in it. In my case, the business plan was a reactionary process that I undertook at the request and insistence of lenders. Today, with lending standards being challenged resultant of years of abuse and poor practices, it is increasingly important for entrepreneurs to put together a complete business plan early in order to acquire financing. Starting to write a business plan while attempting to conduct business and solicit money from lenders is not a viable option.

Statistically, most businesses fail within their first two-years. According to Sharif Khan (2005), “78% of businesses fail due to lack of a well-developed business plan.” Today, many entrepreneurs are setting forth on a business venture without any plan whatsoever. This is a sure way for business failure. It is the equivalent to driving with a blindfold on. My advice to aspiring entrepreneurs is to conduct as much research and planning as early in the project as possible.

There are many organizations that can aide prospective business owners in the challenging process of organizing a business venture. According to its website, SCORE “is a nonprofit association dedicated to educating entrepreneurs and the formation, growth, and success of small business nationwide.” When I was self-employed, I turned to SCORE for counseling and advice. The only investment required to speak with a SCORE member is your time. As a partner of the Small Business Administration, I would highly recommend that any aspiring entrepreneur utilize this valuable community resource.


References

Khan, S. (2005, March 24). The Chief Cause of Business Failure and Success. Retrieved
on February 12, 2009 from http://www.enterprisetoronto.com/index.cfm?linktype=mainlink&linkId=99&cont
ent_id=805&fromurl=center
SCORE (2009). About SCORE. Retrieved on February 12, 2009 from
http://www.score.org/explore_score.html
Tzu. S (6th BC). In D. Sawyer (Ed.), Sun-tzu: The Art of War (1994). New York: Fall River Press.

Treasury Baffled – Help Wanted

Several months after the election mandate and amidst a widening recession, the Obama administration is frantically seeking solutions to the U.S. economic slow-down. Markets have reacted to the apparent lack of a plan and assets have been driven to the relative safety of treasuries and gold. Following a prime time assurance of “change” by President Barack Obama, Secretary Geithner sat for the much anticipated economic stimulus plan roll-out. Unfortunately, it quickly became apparent that no plan had been finalized. As Mr. Geithner plugged the new plans web site, scores logged on and were disappointed to find that the site was still under construction. Clicking on one of the few links that did exist on the new site, we were directed to the Treasury’s Tarp Help Wanted section. Since his election, President Obama has reminded Americans that recovery is going to take a while. In light of the fact that the Treasury Department is currently scratching its head and looking for help, I would tend to agree.


From the Department of the Treasury:

The Treasury Department is hiring for positions related to the authorities granted by the Emergency Economic Stabilization Act to implement the Troubled Asset Relief Program (TARP). Resumes previously sent to Treasury have been logged and all resumes are being reviewed on a rolling basis. We are currently seeking applicants who have specific experience in the specializations listed below. Applicants should review the needed skills and determine which position or positions best match their experience. Applicants should submit their resume to the email link(s) for those opportunities. Those who previously submitted a resume to the general email address may re-submit it to a specific category below.

Aristotle on Usury

Of the two sorts of money-making one, as I have just said, is a part of household management, the other is retail trade: the former necessary and honourable, the latter a kind of exchange which is justly censured; for it is unnatural, and a mode by which men gain from one another. The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural use of it. For money was intended to be used in exchange, but not to increase at interest. And this term usury, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of all modes of making money this is the most unnatural.

~Aristotle

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We Have a Plan

The Senate approved funding for $838 billion dollars of stimulus spending today. The plan was subsequently introduced by its architect, Treasury Secretary Tim Geithner. Mr. Geithner has provided us with the details of the new plan that are available at http://www.financialstability.gov/. To save you the trouble of reading the intricate details of this plan, I have attached them below:



This site is coming soon.

Photo credit: www.blog.prospect.org