How many times have you set out on an endeavor without a plan and have everything fall apart into a heap of failure. Sure, you might get lucky and have everything work out but it’s rare to succeed without a formal plan. Try building any type of structure without a plan or blueprint. Building a successful business can be as complex if not more complicated than building a structure. You have to navigate through a myriad of regulations, labor issues, economic uncertainty to name a few.
In business, the common tool for planning is a business plan. A business plan need not be lengthy or complex. It just needs the following components (with a few leading questions for each):
MISSION/VISION:
What are your core values?
What is your purpose for being in business?
Where do you see you and your business in 5-10 years?
MARKET:
Who is the target market you wish to serve?
How will you reach and engage with your market?
What is your unique offering you offer to benefit your market?
MEASURABLE GOALS:
What are the actions that make the most positive impact on your business?
What are the top 3-5 goals, if achieved would be transformative?
Who will be responsible and who can assist in achieving the goal?
MONEY MATTERS:
What are your sources of cash flow?
What are your revenue and expense projections?
How will you address any cash-flow crisis?
Of course, there are other elements that can be included in a business plan (SWOT analysis, Operational strategies, etc., but this is a good place to begin). The most important thing, other than drafting a business plan, is to review it at least once per quarter and set specific quarterly objectives that will move you toward your longer range goals. The benefit of having a plan seems self-evident but here are a few more reasons:
- A plan helps to identify potential obstacles and trials.
- A plan aids in making key decisions.
- A plan supports setting priorities.
- A plan facilitates wise time management.
- A plan encourages a proactive approach rather than being reactive.
Do you have a business plan? If not, why?
Take the time to create a plan. You will not regret the time you devote to it. It need not be perfect, as it will evolve and become crystal clear over time. Just start.
