Thursday, July 19, 2007
A Comprehensive, Detailed And Effective Business Plan
I've had many discussions about business plans and the need to spend time creating one. To me, a great business plan is not something that is written and then put in the filing cabinet. A great business plan is part of the everyday course of business; almost like a road map of sorts. An effective business plan can be a touchstone for improving your business even as you conduct business.
An "active business plan" is one that is used as reference; it changes as the needs and capabilities of a business change; it evolves with the company and works to allow the company to grow and be effective. I believe an "active business plan" should include milestones, calendars and methods of measuring the success, profitability and effectiveness of all aspects of the company.
A well developed business plan is much more than a description of a company. It serves as a guide to conducting business and helps the business person explore strengths, weaknesses and opportunities. There are many aspects to an effective business plan and I've posted on this topic many times.
I received a small business newsletter from AT&T today and I followed one of the links. It pointed a new section of their website called "The Watercooler." http://smallbiz.att.com/yourworld/watercooler This section has live, interactive and archived resources for small business people ranging from accounting to marketing and all point in between. On the right side, there is a category of links titled "most popular" and the very first link was to the following article.
How To Develop And Use A Business Plan
A well-prepared business plan is more than a necessary tool to seek funding. It should also be a functional road map for your growth strategy.
For any business to be successful, it must be started and operated with a clear understanding of its customers, its internal strengths, its competitive environment, and a vision of how it will evolve to compete in the future. A business also needs money to start, to operate, and to grow. By expending the effort to develop a comprehensive business plan, you will have a powerful tool for attracting investors. Your business plan is the roadmap for your company. It clearly states where you are, how you got there, and how you plan to proceed.
This Business Builder steps you through the process of developing a comprehensive business plan. Although businesses may vary with regard to the products or services they offer, there are specific elements that a potential investor will look for in any business plan. Therefore, every well thought-out business plan includes a description of products and services, a competitive analysis, a marketing plan, a management plan, and a financial plan. Your business plan will provide you and potential investors or lenders with a clear understanding of your objectives, strategies, and financial viability.
What You Should Know Before Getting Started
- Why Write a Business Plan?
- Tips for Creating a Good Business Plan
- Who Should Write Your Business Plan?
- What Lenders Look For
Process for Developing Your Business Plan
- Begin the Plan with a Summary
- Describe Your Company
- Analyze Your Market and Determine Your Strategy
- Describe Your Product/Service and How They are Produced
- Describe Your Management Organization
- Describe Your Operations
- Develop Your Financial Forecast
- Determine Your Proposed Financing
- Outline Your Plan(s) for the Future
- Other Considerations
Copyright © 1999-2006 Edward Lowe Foundation. www.edwardlowe.org All rights reserved.
Whole article http://smallbiz.att.com/article/PL20_0200
As I look at how my business has evolved in the past few months, I can see a need to revisit the business plan. It reminds me of all of the times I've written about the importance of keeping the plan current and using it as guidance. Things have been happening very fast in my business, but reading this article and taking a look at my last revision of my older business plan, I can see that I need to give this some time.
Time... that's one of those things it seems we as business people lack the most eh? Well, investing time in planning can actually create time where it didn't exist before. Making the effort to thinks things through, create new processes and discovering ways to delegate, assign or contract areas of need can actually manufacture time.
As my little company grows, the time has never been more right for a comprehensive, detailed and effective business plan. Once the August issue of Soky Happenings is complete, I will be writing out a new "skeleton" from which to start building my new plan. Perhaps I'll share parts of the process without letting any cats out of the bag. (grin)
Labels: planning, small business
