BUSINESS PLANNING: YOUR ROADMAP TO SMALL BUSINESS SUCCESS
Plan your work for today and every day. Then work your plan. – Margaret Thatcher
Are you thinking about launching a small business? Congratulations! When we talk with entrepreneurs who have decided to make the leap, they usually comment that going from ideation to implementation brings up a dizzying number of details and considerations. One of the best ways to bring it all together is to develop a business plan, and this blog briefly explores the “why” and the “how” of doing just that.
Why You Need a Business Plan
In addition to calming the chaos that comes with getting your company up and running, creating a business plan delivers several advantages.
- It establishes tangible goals.
- It prioritizes action items so you know what to focus on first.
- It helps to define recurring and one-time costs.
- It backs up funding requests by providing potential investors with a look at your game plan.
- It reveals possible blind spots (competition, market factors, etc.) for you to address.
- It clarifies roles and responsibilities within the company.
These benefits apply to established businesses as well as new entities. It’s never too late to create a plan for your company, and doing so will help you operate more efficiently and with more intention.
Elements to Include in Your Business Plan
How you structure your plan and what you include is up to you, though you will likely want to loop in your investors and/or partners if they are part of the equation. Every business situation is unique but below is an overview of the essential elements we recommend including:
Executive summary: Gives a high-level snapshot of what your company does, where it is located, who it serves, and how management is structured.
Company description: Provides more detail about your customer profile(s), your competitive advantages, your company’s legal structure, and specific expertise your team brings to the table.
Market analysis: Delivers specific, relevant data regarding your industry, competitive landscape and analysis, your market size and market share, customer segments, and your geographic reach.
Marketing and sales: Explores how you will position and promote your products, how you plan to acquire customers, how you will deliver your products or services to customers, and detailed budgets for both marketing and sales activities.
Organizational structure: Defines ownership and management roles as well as information about the people who fill those roles. This is also the place to provide a detailed organizational chart, including considerations for future hires as the company grows.
Financial projections and assumptions: This brings together financial projections, start-up costs, projected income statements, financial goals, and more. Be as specific as possible and include as much detail as you can to create a complete financial picture for your business.
We hope this business planning snapshot inspires you to take the next step with your company. A deeper dive into the plan elements outlined above will help you determine what is right for your business and there are a number of free templates available to help you craft the ideal plan. Not surprisingly, our favorite source is the Small Business Administration’s, which you can find here.
Our last bit of advice is to keep your business plan focused but flexible. Virtually every market sector is fluid and dynamic so things will undoubtedly change over time. Keeping a nimble mindset and viewing your plan as a living, breathing thing will help you course correct more easily and quickly take advantage of new opportunities as they come up. Then, take Prime Minister Thatcher’s quote to heart and work your plan every day!
