Business Plans - A Bum Wrap:
Business plans! "Oh no, do we have to read about this again? Hasn't everything possible about business plans been said or written by now?" "Hey, I don't need a loan, why should I write a business plan?" "My business is five years old, business plans are for start-ups." "I know what I'm doing and where my business is going. I don't need to write it down." "It's a waste of my time and I am too busy running the business. Besides as soon as it is written, it's out of date." Have you ever heard yourself thinking or saying these comments when business plans are the topic of discussion? I hear them frequently. There seems to be a consensus that business plans are not worthwhile or not useful for the average business owner in day to day activities. What caused the business plan to rate such a reputation? The response may be a misperception. For starters, take a walk through your favorite bookstore's business section and check out the books on business plans. A lot of books, promoting the usefulness of business plans, are focused on helping a business owner be successful in acquiring financial resources [loans, lines of credit, venture capital, etc.]. So is it any wonder that a business owner with no need for cash would see taking time to create a written business plan as an irrelevant activity? The statement, "I know where my business is going, I don't need to plan", is valid if the business is operating in a vacuum. Businesses don't operate in vacuums. The economic forces in today's globally influenced markets are evolving so fast that the future of any business will depend on how prepared you are to deal with constant challenges and changes. The decisions or choices that you made in the past to move the business forward may not work anymore. You may no longer be able to spontaneously deal with these challenges. A change in perspective to seeing the business plan as an aid to operations, rather than a document to satisfy financial institutions will provide an owner and the employees with relevant guidelines for daily decision making. Where to start? Begin with some basic questions. What does the business look like today? What do you want it to look like in the future? What is the gap between the two? Is the gap the amount of gross revenues, facility size, target market, product or service lines, number of employees, profit margin, domestic or foreign markets, operating capital, etc.? Asking yourself these questions is the beginning of the planning process. To help with the actual structure of a business plan, find the best resource for your style of creating. There are numerous books available at bookstores and additional resources from the SBDC's [Small Business Development Centers]. There are software programs, which ask questions regarding all the elements found in a business plan. Once you have completed the software program, a written document is generated. Having a business plan is like going on a journey - having contingencies thought out ahead of time and being ready for whatever is encountered, makes for a more enjoyable and successful experience. ©2000-present Flight Unlimited - All Rights Reserved |
