I’m thinking of a vital tool that virtually all businesses need. A tool to help you decide where you want to go and determine how you are going to get to the next level. As your business grows and you have to make decisions for the future, this tool will be a clear and concise road map to guide you around potential pitfalls.
This tool is, of course, a business plan.
No business is too small or too simple to not need a business plan! But if you’ve never created a business plan before, this may sound daunting at first. Or perhaps you have an old business plan that is a little outdated. If so, remember that you don’t have to do this all at once, but it will be worthwhile in the long run.
Try one of these brainstorming ideas to help kick-start the process of detailing your business plan. Start with whichever one appeals to your own style:
1) Brainstorm with a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. As you think through these components, you’ll naturally try to focus on strengths, compensate for weaknesses, find opportunities and avoid threats. Write down your thoughts and get a great insight on your business.
2) Do a sales forecast the next few months, then annually for the next few years. Keep it simple for now, but also break it down into units, cost per unit, revenue per unit, and sales. Check out some tips from SBA.gov on sales forecasts, if you need.
3) Write (or analyze and re-write) your company’s mission statement, vision, or mantra. Place yourself in your customers’ shoes, and ask yourself – Is this mission statement just hype? Would I share this business with others? Is this company ACTUALLY different from all the others and why? How could I tell if this company is the right fit for me?
4) List the problems your customers face, and detail exactly how your business will help solve them. Put yourself in your customer’s shoes again and delve into the demographic. Talk to several of your customers, if possible. If you have a large customer base, you may consider a simple survey.
Wherever you start, continue with your business plan and follow through with it. Your finished plan will cover the next 3-5 years and should include information like:
– Your mission statement
– The nature, products, and services of the business
– Demographics of your target audience and industry outlook
– Pricing structure of goods/services
– Sales and marketing strategy
– Regulatory restrictions
– Projected financial statements
– Board members qualifications
– (read more about why you should have a business plan here)
Having a formal business plan will put your ideas in writing, give you an established plan for your business, and help guide you on the road to success.
Hopefully these ideas have helped you kick-start the process, but be sure to contact your local SCORE office if you need help developing your business plan. This organization offers free mentoring to entrepreneurs on many different topics including writing a business plan. To find a local office, see http://www.score.org/chapters-map.
