Planning for Success

Running a business without a business plan is like rock climbing blindfolded. Your chances of making it successfully to the top are slim, and the process will surely be death-defying.

A business plan isn’t just a means of securing financing. It’s a step-by-step guide to running your business and creating a product or service that will make it in the marketplace. And like any other map, your plan will have to be adjusted according to your vision for the company, conditions and opportunities in the marketplace and your business’s current condition.

A business plan helps minimise the pitfalls of running a business, and be prepared for those that do arise.

To many people, the concept of writing a plan for their own business is a daunting prospect. But it needn’t be. In its essence, a business plan is simply writing the answer to these 3 questions:

1. Where are you now?

2. Where do you want to be at a future date?

3. How will you get there?

Where are you now?

Provide a planning base for your business to establish such things as:

your business idea
your current level of sales
your customer groups
your products and services
your pricing policy
your distribution policy
your promotional activity
your overall operation
your employees
your finances.

Answering the question, “Where are you now?” is often a major stumbling block as most people don't know where to start.

The simple solution is to divide your business planning into 4 key areas: Operational, Marketing, Employees and Finance.

This allows you to analyse your business and create a solid base for planning.

Where do you want to be at a future date?

This is asking you to visualise your business’s operation and success at a set date in the future. It’s an exercise that is identical to setting your own personal goals but for the fact that the focus is on your aspirations for your business.

How will you get there?

This is the process of identifying the steps, or strategies, you need to achieve the business goals you’ve set.

Some of the things you may want to consider at this point are:

What is the need for what you are offering and what profit margins can you expect?
What is a reasonable expectation of profitability and when?
How will the business pay you and any team members?
What are your estimated expenses?
What is the pricing strategy?

While these things may have occurred to you already, it’s vital to write them down. This:

reinforces your vision
gives you a reference point for checking progress
highlights factors you may not have considered when creating the plan in your head
helps you determine and coordinate all aspects of business operations
assists you in determining the risks and benefits associated with any changes
gives you a means to analyse and determine what might be the best change to boost your business out of a stagnant situation
decreases your chances of making a mistake or not considering important factors in your business
ultimately increases your chances of success.

Business plans are not only for those just setting out on their journey in the marketplace. They are useful when acquiring a new business, forecasting growth, introducing a new product or service, entering a new market, responding to changes in the market or changing a significant aspect of your business.