Gabrielle Melchionda, mother of Silas, 6, and Jasper, 2; owner of Mad
Gabs in Westbrook, ME. Produces pure, natural body products.
Employees:
5.
Projected 2006 gross income: about $500,000.
Business plan, schmizness plan. I didn't know a thing about one
when I launched Mad Gabs in 1991. I was a junior at the University of
Massachusetts Amherst, making lip balm in my mother's kitchen. I used
my neighbor's beeswax, essential oils and a Pyrex measuring cup. I
figured I'd waitress and also sell lip balm as long as it was fun.
Fifteen years and two million products later, I have this to say: Lip
balm is fun, but only because I knuckled down and wrote a business
plan. In 1996, after five years of traveling to health food stores and
filling orders, I realized I had no idea what I was actually doing.
What was my business model? Should my financial plan include my
waitress tips?

Thankfully I met Joe Sibilia, whose foundation, Gasoline Alley,
operates a business incubator for socially responsible entrepreneurs in
Springfield, MA. Joe liked my product and, for the better part of 1996,
lent me his accountants, graphic designers and business strategists. I
finished a 12-page business plan, racing to meet the best kind of
deadline:
I was moving to Maine to marry Matt Chappell, a Tom's of Maine-er I'd met at a trade show.
In May 1997, my one-woman business changed dramatically: QVC decided to
feature me. Realizing I'd need to rent space and hire help in order to
fill a major order, I grabbed my business plan and headed over to
Coastal Enterprises, Inc., which offered me a $20,000 loan. In four
minutes on TV, I sold $55,000 worth of lip balm, more than the entire
previous year! With my profits, I created a hand and body balm and sent
samples to leading beauty editors. Before I could blink, I was in Vogue
and 29 other magazines. I learned to take credit cards and update my
business plan, which I now do annually.
After my son Silas was born in 2000, my career goals shifted. I decided
to cut back my hours to 25 a week. My latest plan, which includes three
years of budgets, envisions Mad Gabs' annual growth at 15 to 25
percent, a number that I hope will keep my business and my family
healthy. Could I be making a lot more money? Yes, but I only want to be
in business if it's fun.

1. Writing a business plan may not be fun, but it's a necessary first
   step. Planning forces you to prioritize your ideas, figure out the best
   structure for your organization and determine your style as a leader
   and a business owner. It's a lot harder to crunch all those numbers and
   figure out your goals when you're in the midst of traveling to trade
   shows and filling orders. Just picture trying to decorate, paint and
   furnish a nursery while tending to a newborn and having no sleep!
2. You can't get a dime without a plan. A business plan shows lenders
   that their faith in you—and your company—is warranted. Why will your
   idea succeed? You need to answer that in words and in numbers. Have you
   thought your idea through thoroughly? Can you handle the obstacles that
   you will inevitably encounter?
3. Get help. If you aren't lucky enough to find a business incubator
   like I did, take a course in business-plan writing. Maine and some
   other states have FastTrac, a class that sends you home with a
   completely fleshed-out business plan. Go to www.sba.gov and find out
   what resources your state offers.
4. Test-drive your plan. Share it with your parents, small business
   owners and friends you trust. Before you meet with banks or investors,
   you need to make sure you've presented your ideas with maximum
   clarity--and maximum impact.
5. Enjoy the process. Use your planning time to go deep within
   yourself and think about who you are and what you really want to do in
   life. Position yourself for success financially, structurally,
   intellectually and, last but not least, emotionally.