The Virtues of the Business Plan

After telling you abut the wonderful virtues of a business plan, I find myself preparing one for a business that my son and I are contemplating together.

Though I find a business plan to be extremely useful, it doesn’t mean that I actually enjoy preparing one, frankly my eyes a glazing over just thinking about it. But the enterprise that we are thinking about is relatively unfamiliar to us, so it is doubly important that we know what we are getting ourselves into.

My main focus at this point is the market analysis, because this part of the plan will tell us a lot about the future success of our business. I believe that studying the competition will reveal much about how to market, how to price our product, and most importantly, how to differentiate ourselves from our future competitors.

Another area in which I am seeking answers is in the starting capital that we will need, and how fast we think we can recuperate our initial investment.

The way I see it is that it is not a waste of time if after the completion of the plan we decide that this business is not for us. Better to spend several weeks preparing the plan, and studying it, than to spend months and a ton of money only to get to the same conclusion.

So I am practicing what I preach, and I am dutifully working on the business plan. This exercise will surely take the pink lenses off our eyes, but will also make us more confident about our final decision.

If you are thinking about starting a business, I advise you to work on a business plan. You will find plenty of help in the Small Business Administration website at sba.gov

Tip of the Day: Business Plan, Not Just a Good Idea

Having a business plan is not just a good idea; it is a most important and helpful tool. By focusing your attention on the parts of your business that need tweaking, you can have more control and your business can be more profitable.

Though many business owners dread the idea of preparing one, and you may be one of them, you need to know that you are not alone. There is plenty of help available. Contact your local office of the Small Business Administration for information about their classes, or go to their web site at www.sba.gov. There are also several companies that sell software to help you with this task. You will find many different programs and templates on the market. A quick search on line will lead you to products that fit your needs.

The Importance of a Busisness Plan

It is understandable that many business owners and prospective business owners hesitate, or outright refuse, to prepare a business plan. The business plan is a detailed map to your business. But the emphasis is on “detail”, and that is why so many people shy away from this tedious task.

But the business plan is a most important tool, and it is often the key to your success. It isn’t that the plan by itself will make you successful. But because it forces you to look at every aspect of your business, it really makes you focus on all the components that make a business flourish.

If you are in the planning stages of your business, the plan will help you to consider all the costs involved in the start-up phase of your business. This way there will be few surprises, and you are more likely to stay within your budget.

Because the business plan will include a market analysis, you will be more likely to treat your business as a money making enterprise, rather than a hobby, or something that “sound like it will be a lot of fun”. There is nothing wrong with having fun; in fact, I recommend it. But if you are not making any money, or if you are running into many unforeseen problems, believe me, the fun will go out of your life faster than you can say, well, “fun”.

When it comes to preparing your business plan, you are not alone. There is plenty of help available. Your local office of the Small Business Administration has classes that can help with this task, or your can go to the website www.sba.gov. There are also several businesses that sell business plan templates, and these can be very helpful.

For established business the task is no less important. Perhaps you have been running a successful business for several years; well, the plan will help you to analyze it in detail to see if you want take it in a different direction. Also, you will see how money is being spent, and you can make adjustments and cut costs. You can look take a close look at your market and see if it is feasible to seek a different type of client, or offer new products.

Don’t shy away from preparing a business plan. It is a very empowering tool. Use it wisely.