Conveniently, the ten yes or no question evaluation leads you to eleven steps:

Step 1: Reality Check – Candidly answer the assessment questions above and take appropriate action to address issues receiving a “no” response.

Step 2: Get Lean and Mean…

Step 3: Maximize Cash Flow…

If after the reality check you find yourself at a loss for ways to start tackling each step, the SBA also includes thirteen separate performance resources.  Most are aimed at their loan programs and business plan writing but there is a marketing guide, a website construction primer and information on government contracts in the Free Online Courses section.

Q: How does a small business get big? We have been at the same level for years now and can’t seem to breakthrough.

Jess

A: Your question reminds me of a quote I recently saw by J. Paul Getty, once the world’s richest man: “My formula for success is rise early, work late, and strike oil. ”

No, you are not going to strike literal oil; those days are over. But figurative oil, why not? Think about Google founders Larry Page and Sergey Brin? Do you think they feel as if they struck oil? You bet. Richard Branson took The Virgin Group from a one-man band to a worldwide conglomerate, and you can bet he feels like he struck oil too.

In fact, every company on the New York Stock Exchange or the NASDAQ started out as a small business. If they did it, so can you.

How? There is no one single answer. Different companies use different methods. Here are some of the best ways to go from small to big.

Find a great partner: Chester Carlson invented his copying machine at home but could not sell it – to anyone. A man named Joe Wilson eventually saw the machine and teamed up with Carlson. Wilson’s company eventually put more than $100 million into R&D, and then renamed the business – from Haloid to Xerox.

When you work alone, as many small business folk do, or even if yours is a company of, say, eight people or so, there is only so much you can do by yourself. Your institutional knowledge is limited to what it is you do, your reach is similarly limited to your normal channels, and of course your resources are limited. In those cases, growth, while a laudable goal, is often one that can also understandably be out of reach. So what do you do?

Find a partner, that’s what. Partners can bring your business to a whole new level. They have contacts you do not and resources different than yours. They also will have ideas that are new to you and offer unique ways to implement those ideas. The key then is to find strategic partners who offer some synergy: They need what you do and you need what they do. Together, what you can accomplish can be more than what you can do alone.

Be first to market: Ed Lowe owned a small factory that made a kiln-dried clay that was supposed to be an industrial absorbent. But it was only when his neighbor came by one day and asked to use some for her cat that Kitty Litter was born. Being first to market also helps you go from small to big.

Innovate : Bette Naismith was a terrible typist, but a good painter. That is why she would bring small tubes of paint to the bank where she worked to cover up her typos. Playing with various formulas, she eventually invented Liquid Paper at home, on her kitchen table.

Creating a new product or a way of doing things is a tried and true way to grow from small to big. Innovation gives companies what is known as the “first mover’s advantage,” and that in turn allows them to own a new market.

Be unique : If you want to take your business to the next level then one thing you should concentrate more energy on is your X Factor, that is, that one special thing sets you apart and makes you stand out from the crowd .

Think about the businesses you like best. Don’t they so something special, unique, different, something out of the ordinary? That is their X factor. Figuring out what your X factor is, and then putting extra effort into it, can go a long way to taking you from small to big.

So the upshot is that there are lots of ways to go from small to big, companies do it all the time. The real trick is to pick a strategy that fits your business and your business plan, one with integrity. Do that, and your growth chances are much better.

Today’s tip : One last thought: Plan Big. Notice I didn’t say “Think Big.” Most entrepreneurs have no problem thinking big. But what growth companies do is plan big . They create a team, figure out their X Factor, find strategic partners, come up with a plan, and execute on those big ideas. That is how you go from small to big.

The five main types of business structures

Sole Proprietorship – This type of business is owned by a single individual that earns all the profits and is responsible for all the losses. A sole proprietorship is the simplest of all business structures, and therefore the easiest to set up. However, it is also the riskiest because your personal assets are not protected if a lawsuit is brought against your company. There are also no tax benefits for sole proprietorship owners. While this type of business may be suitable for a small home business, most business owners will find that a sole proprietorship is too risky for their company.

General Partnership – An ownership agreement where more than one person is involved. All parties share equally in the profits and losses of the business, as well as full liability for debts. The general partners also share equally in any personal liability. A general partnership can be formed with or without a formal written agreement and there is no filing requirement with your state. One thing to keep in mind with a partnership is that partners may not always have the same goals or direction for the business, as well as different ideas on how to spend the business’ money.

Limited Partnership – A business partnership where the partners are only responsible for their own investment. Typically, limited partners are seen as "silent partners" who have invested in a business but have no management authority. Since the general partners share the personal liability for the business, the limited partners do no share in this risk. One of the disadvantages of a limited partnership is that there is several state filing requirements..

Limited Liability Company (LLC) – A flexible business structure that allows for the simplicity of a partnership with personal liability protection for the owners. While an LLC doesn’t have to follow the rigid requirements of a corporation, most states do require a formal operating agreement as well as the filing of an annual report.

Corporation – A business entity which has certain rights and privileges (such as owning assets, purchasing property, etc.) similar to an individual. A corporation has a limited liability of its debts and the shareholders’ (owners’) assets are not at risk. Corporations must follow a specific management structure and formal policies in order to remain a corporation. There are annual filing fees for a corporation as well as annual paperwork requirements from the state.

The choice of a business structure is an important one and shouldn’t be taken lightly. For more information, please take a look at the IRS’ website.

Make an “after hours” schedule – Getting serious about your new business means making certain time commitments in order to get it off the ground. Whether it’s getting up a couple hours early or working late in the evenings or working ten hours on weekends, put a regular work schedule down on paper and stick to it. Motivation tends to wane when other engagements take precedence over what should be considered “work time”. So, stay focused and treat your after hours schedule as you would a second job.

Create a business plan – One of the most important things you can do for yourself and your new business is to create a business plan. This will force you to get realistic about the funds needed as well as the monthly expenses and the weekly hours needed in order to get your business running. You might find that you don’t need as much start-cash as you originally thought or that you’ll need to keep your full-time job for at least another year in order to build up some investment money.

Consider enlisting help – You may find that bringing on a partner will help to get your business off the ground (and you out of the rat race) even faster. Of course, entering into a partnership isn’t for everyone, and the idea shouldn’t be taken lightly. However, bringing on a partner with the same goals and who brings complimentary skills to the business could be one of the best decisions you ever made.

Think about when you could leave your job – Give yourself a motivating goal to reach. What will it take in order for you to work for yourself full time? Fifty orders a month? Three hundred website visitors a day? $5,000 in sales per week? Giving yourself this concrete goal will help to boost your motivation and hopefully get you to that point even faster. Be sure to take into consideration things like cost of health and dental insurance – as well as anything else that your full-time company is currently taking care of.

While the thought of quitting your job to work for yourself may sound both exciting and terrifying, preparing a plan can help make the transition easier. With a carefully thought out work plan and clear goals, all the guessing is gone and you’ll have real figures to base your decisions on. For most people, starting a business in their spare time makes the most sense and takes some of the financial risk and worry out of the equation. There are plenty of business owners who still clock in at a regular job in order to keep their benefits, regular salary and to share in the comradery of the workplace. Once your business is off the ground and showing signs of success, you’ll have the option of choosing to keep your full-time job or to devote all your working hours to your new business.

But what makes a business plan good? Well, it’s not measured by the number of pages or creative graphics used. A good business plan is informative, factual and detailed – able to accurately forecast sales, growth, and expenses. A good business plan should leave readers – whether a banker, venture capitalist, private investor, or company manager – fully satisfied with the information they just read. In other words, not needing additional information, financial statements or growth charts. Every question should be answered; and every potential hurdle should be addressed.

The elements of a good business plan

Easy to Understand – You and your business colleagues may be familiar with industry terms and technological jargon, but don’t expect potential investors to be. A good business plan should be written so that someone who is completely unfamiliar with your product or service can easily read and understand your business plan. If you find you are having a hard time putting your information into a more simplified language, you may want to seek the help of a technical writer with experience in your industry.

Thoroughly Researched – Nothing makes a business plan fizzle faster than estimations on sales, costs and growth based solely on a “gut feel”. It cannot be stressed enough that every aspect of a business plan should be built from actual data. Even if your business is still in the “idea stage”, you can base sales off of your competition and costs by calling suppliers and service providers. Yes, this entails time and effort – but no one said a good business plan was quick and easy to create.

Detailed information – Readers of your business plan want specific, detailed information. What is your cash flow each month? Who are your direct competitors? What are your monthly sales? How much do you plan to spend on advertising each month? Who is responsible for expanding the sales force? This is not the time to be lazy – remember, a good business plan leaves no question unanswered.

The different uses of a business plan

There are many different types of business plans; some are shown to people outside of the company, while others are used internally to strengthen the company. Here are some examples of what a business plan could be used for:

* Obtain start-up cash for a business idea
* Secure funding for business expansion
* Determine the feasibility of a business idea
* Layout goals and specific objectives for the upcoming year
* Creation of a marketing strategy and budget

In the end, a good business plan is one that helps you to achieve your objective – whether that’s to secure financing, define company goals, or create a marketing or expansion strategy. There’s no doubt that the time you take to make your business plan a good one is time well spent!

While there are many different types of business plans, there are two main categories:

* External business plans are shown to banks, venture capitalists, potential merger companies, etc. in order to seek loans, investments, a merger or an acquisition.

* Internal business plans are for the use of planning or expanding the company and are typically shown to business owners and managers. Because internal plans are shown only to company insiders, there’s no need for a detailed company description or background financial information.

The Most Common Types of Business Plans

Start-up Plan (External) – This is the most basic of business plans because it is merely providing an outline of the new business. It should begin with an executive summary and include a detailed description of the business idea, competition, owner(s)’ business experience and background, market, marketing strategy, etc. The financial section should cover projected sales and expenses as well as a profit and loss statement, balance sheet, monthly projections for the first year and a cash flow statement.

Investment Plan (External) – The purpose of this plan is to obtain an investment or loan from a bank, venture capitalist or private investor. This plan differs from a start-up plan because it is used when the company is already operational. Instead of forecasts and predictions (as seen with a start-up plan) an investment plan relies heavily on actual financial and sales information, such as an income statement, balance sheet, profit and loss statement, cash flow statement, etc.

Growth / Expansion Business Plan (External or Internal) – Depending on the purpose this plan is used for, this can either be for internal or external use. Both, however, should include a comprehensive strategy detailing the expansion along with a monthly forecast of sales and expenses.

Strategic Business Plan (Internal) – This plan is more of an outline that focuses on the company’s long-term goals and the steps necessary to achieve them.

Marketing Plan (Internal) – Requiring extensive research on target markets, market trends, and competition, a marketing plan is essential for growing companies in need of a marketing outline and budget. It should include a detailed analysis of the company’s targeted consumers as well as complementary marketing, advertising and PR strategies. This type of plan may or may not include results from focus groups and consumer surveys. Read more on developing a marketing plan .

Annual Plan (Internal) – Usually created in a company’s financial third quarter, it outlines the financial growth and sales goals that a company hopes to achieve over the next year. This type of plan tends to have specific deadline dates, tasks and responsibilities.

Once you realize that a business plan can be tailored to your business’ needs and not the other way around, creating one is a lot less intimidating. Business plans can be an invaluable tool, both for company insiders and outsider investors. While they may take some time to create, the information they present is well worth the effort.

What is the business and how much money do you need?

But even the prototypical KISS-modeled business plan has some new fundamentals. For those of us who have been doing this for a while, it’s been a shock to the system. For anyone else who is just getting started as a small business owner: hang on tight, it’s going to be a bumpy ride.

The Executive Summary

Isn’t that a fancy title? All it means is tell the investors, quick and dirty, that you have a solid business model that makes a profit (or will make a profit very soon). But here is the trick: this is the most important place to be jargon-free and user-friendly. Reading this section with the BS-o-meter on high, all investors want to see is what your company does and why it makes (or, again, is going to make) money. Get technical later.

The Market Analysis

Investors see business plan after business plan filled with the same general market analysis. Digging up a study about total market size doesn’t make you a frontrunner anymore.

So what does?

Your competitors. Study ‘em. Talk about ‘em. In seemingly gratuitous detail. Identify your direct, indirect and even potential competitors. What are their offerings? Their market percentages (whether local or national)? Their funding? Their pricing? Promotional Strategies? You get the picture. Now why are you different and why are you better? Are you cheaper? A better value for the money? Do you offer add-on services that the competitors do not?

Show evidence that customers really do want to buy your product or service. Show off your secured contracts or orders. If you don’t have that yet, offer information on beta testers who have tried out your product, or guinea-pigged your new models or formats. Focus groups of potential customers can also be offered as proof of customer appeal. This doesn’t have to be a difficult project. A CPR Instructor who owned her own training company found a niche when she noticed a change in state law that required day care centers to provide employee training on Shaken Baby Syndrome. She polled several day care owners in her area, asking would they be willing to change training providers if SBS was included in the training package for a minimal fee increase. Most of them said yes, she used that information to get funding from a Hispanic business association, then she went back and landed the contracts.

The Management

One thing about the currently stalled economy is that it’s easier to find management talent. And no, they don’t have to be full-time…or even drawing a salary at all.

It is possible to bring in an advisor to fill in any expertise gaps, at least temporarily (and these advisors getting offered company equity in exchange for salary is not a bad thing for investors to see). Just make sure that if their boss doesn’t know they are moonlighting (even gratis), that their resume remains "blind" in the business plans (no names, contact info, or identifying stats whatsoever). This is especially important if they are a prospective hire if your funding comes through!

The Financials

Profit in three years is a thing of the past now…the new rule of thumb is one year to 18 months with detailed monthly projections that account for the slowing economy. And IPOs are considered a shaky prospect now (and for the near future), which makes buy-outs look better and better to investors. Since investors still want to be able to cash out in 5 to 7 years, consider including potential acquirers named in the business plan, even if you don’t intend to sell…it shows a good knowledge of your market.

In closing, the solid basics are more important than ever. Investors have lost a lot of money since the crash of the dot-com up-cycle. But they aren’t gone for good. It just takes a little more hustle to land an investment angel. There are some excellent web resources for business plan models, check out the American Express small business website for a more in-depth study.

You see many businesses choosing to use the election and other current events as inspiration for marketing campaigns that capitalize on the public awareness of the political events. How could you do this for your small business?

* Create voting buttons for new products to be carried on your site and have your own “election”

* Using the theme of your own “primary”, allow your customers to decide your next offering or product to put on sale

* On your website, simulate a “debate” between a couple of your products and services and your competition’s. Make sure not to violate any copyright laws during your mock debate and always change the names to protect the innocent (and not so innocent).

Try not to appear political in your marketing ideas as far as taking sides with candidates or issues. Although it is perfectly OK to use the election as a marketing topic, you don’t want to take sides – stay out of the actual politics.

On a more serious note, be aware of the campaign issues and the potential impact to your business. For example, if you import products from outside the US, make sure you are aware of the candidate’s positions on trade and other related issues. Depending on which candidate wins, you may need to shift the strategy of your business to more or less depend on overseas suppliers.

With the economy being very sensitive during election years, make sure your business strategy incorporates this knowledge into your planning. This may not be the best year for expansion of your small business, or it might be depending on how your niche is reacting to this economy. Take steps to recession-proof your small business .

Make sure your company is providing products and services where the rubber meets the road. You want your business to be seen as indispensable to your customers, so they will continue to purchase your products and services pretty much no matter what the economy does or who is elected president.

Update your business plan , taking into account the election, the issues, and the economy. Have viable alternatives for each of the major scenarios you believe possible within your niche segment. Stay informed, make time to study, and don’t hesitate to take action when you know the time is right.

Presidential elections, difficult economic conditions, and changes in governmental policy present challenges that can be viewed as obstacles or opportunities, depending on your viewpoint. If you view them as opportunities you can make your business better and improve your situation throughout this next election year.

A business plan can also help convince banks, businesses or individuals to invest in your idea or to give you a loan. So, it’s important that your business plan is professional, truthful and detailed. You need to show your potential investors that you are serious about your business idea and that you have put time, effort and research into making sure the business will work – even if it has shortcomings or existing competition.

While every business plan is different and will include different information, facts and figures, there are certain things that every entrepreneur should NOT do.

1. DON’T put your business plan together hastily – Creating a business plan is no time to be lazy or to take the easy way out. A business plan is not something that should be done in a day, or even in a week. You should be doing research, crunching numbers, getting information about competitors and even conducting surveys if need be.

2. DON’T fluff the numbers – Business plans are not just created for investors, they’re for the entrepreneurs themselves. If you’re playing with the projected profit or sales numbers, then you should be worried about whether or not the idea is a viable one. It’s better to scrap an idea that doesn’t have merit, then to fudge the numbers and cross your fingers that the idea will work.

3. DON’T ignore weaknesses in your idea – Be truthful about potential problems, but also be proactive in providing a potential solution to each problem.

4. DON’T be overly optimistic when estimating future sales or costs – If anything, you should be overly conservative. That way, you’ll know whether or not your business idea will be able to handle unforeseen costs or price increases. Also, projecting sales too high or costs too low might signal a red flag to investors that perhaps your entire business plan is unrealistic and based on hopes, not facts.

5. DON’T exaggerate your abilities – Instead of selling yourself as a "jack of all trades" who can do everything from marketing to accounting to web development, focus on the talents you really excel at. For the tasks that you are unable to do well, address how you will get those done – outsource, hire employee(s), taking on a business partner , etc.

Avoiding these business plan pitfalls is easy as long you are detailed and honest when outlining your business idea and discussing its shortcomings. Avoiding potential problems all together can prove to be very worrisome to potential investors, as they might wonder why you haven’t noticed some obvious obstacles. And, perhaps, assume your whole business plan wasn’t well thought out.

While most of us have experience in our lives as consumers of businesses in America, few of us have experience as consumers internationally. This lack of experience can make entering a foreign market with your business a very scary proposition. This fear, however understandable, could be costing your business or your business idea the opportunity for additional sales and profits.

There are many options for foreign market entry strategies, and there are just as many businesses that are profitable to export to other countries. The entry possibilities include direct and indirect exporting, joint ventures, and strategic alliances between your business and a foreign partner.

There are benefits and risks associated with each method, but all are contingent on the type of product you are exporting, the need you will have for product or service support, and the economic, political, business, and cultural environment of the country you are attempting to gain entry into.

The best strategy will depend on your level of research and the quality of your plan. Additionally, the level of your company’s commitment to your overseas or foreign expansion and your willingness to accept risk will further define the level of your foreign expansion.

If you have made the decision to take your company international and move into direct exporting, you need to put together a list of required resources and have a solid strategy to deal with the required regulations and logistics challenges. The Small Business Administration’s Basic Guide to Exporting is an excellent tool and can be downloaded online.

This guide is an excellent resource for the first time exporter with descriptions of export steps, terminology, and most of the forms you will need to negotiate and close the sale, as well as to complete the shipping documents. The guide also has a listing of INCO terms.

You will want to make sure you have qualified experts to advise you, including an attorney with international experience, preferably in the country you are going to export to. A freight company also experienced in your country of expansion and a company you can benchmark with as you prepare to export.

It is possible to hire one firm to accomplish all of these things for you, but there is a considerable cost for this type of consulting. If you are willing to spend the time doing the research, you can gain the knowledge and information you require. Once you have the information and a solid plan in place, assemble your team of advisors and go international.