All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.
Sun Tzu
Once you have clearly articulated your mission, vision and values, the next piece to your business should be putting together a plan. There are varying opinions on whether or not you should spend the time putting together a business plan. There are several reasons that a business plan can help you and your business get started on the right track.
The first reason is to have a road map for your business to guide you in where you are going and how you are getting these. Spending the time to put this down on paper will help put it firmly in your mind. Not only will you know it well but I believe having a plan gives you more confidence when you are networking, looking for vendors for your business, hiring etc.
With a business plan you are able to better measure results because you actually know what they are. You can also make and recognize adjustments that need to be made more quickly when you know what you are looking for and why. Measurement of results is where a lot of business owners fall short because they don’t take the time to figure out what numbers are important to their business.
If you are starting your business with employees, you can build a sense of teamwork by working on this plan together. Everyone will be on the same page and will understand what is going on in the company. When you bring on new team members, your business plan can get them up to speed much more quickly by showing them the plan and talking it over with them.
The last reason is one that most people talk about when the subject of business planning comes up. That reason is to get funding for your business. A plan alone does not get your business funding, it’s more like your ticket to the game. The businesses that get funding without a plan are few and far between. You are kidding yourself if you think you will be that special business.
Like I said at the beginning there are some who would suggest that you don’t need a business plan. They would suggest that you can get by with something written down that’s much more simple because people don’t look at their business plan after it is written. My argument is that if you wont take the time to look at your business plan, you probably wont take the time to look at anything else. This is more of a discipline issue more than anything else. Business owners need to have discipline or they will fail.
Even if you did not ever look at your plan again after it is written, I believe the journey is just as important. Putting together a business plan requires you to take a serious look at your business and spend some time thinking about how your business is going to work, what you need and what obstacles exist for you currently. You will have gained some important knowledge up front even if you fail to review later.
How have you been able to use a business plan for success? What are some other reasons for and against putting together a plan?
PS Listen below to this week’s podcast where I talk more about business planning.