Hawaii's economy is built on small businesses, some more successful than others. What does it take to get started? Experts tell us - it takes a business plan.
"A business plan is an important document to anyone who's in the process of starting a new business. The business plan is your road map or your guide in keeping you on track as you're going through the process of starting your business," said Susan Utsugi, Central Pacific Bank Senior VP.
A business plan is just that - a plan.
"it's not like you have a crystal ball. Your document will change, your plan will change but it will allow you to stay focused on your original idea and it's also an effective way to communicate your plan to others," said Utsugi.
Your business plan will require some specifics.
"Most importantly, what is the product or service that you're going to sell. Why is there a need in the marketplace for your product and service, what makes it unique, what differentiates yourself or your product from your competition," Utsugi said.
That's the long view - the plan should also include some nuts and bolts details.
"It should include how are you going to operate and manage your business, so information on your day to day operations, who's going to manage it, what kind of experience do you have or your managers have, what do you need for your business, what kind of equipment," said Utsugi.
Most importantly, Utsugi says, include in that plan a contingency for setbacks, especially during the first year.
"So you want to make sure when you're doing your budget that you do include either a reserve to cover your losses during the first year or have some kind of other income available coming in that will help cover those losses," Utsugi said.
