Many say that preparing a business plan is more an art than it is a science. It is really both. You need to have an effective business planning process and a good format. However, don’t just fill in the blanks on a business plan template. Successful business planning comes from asking yourself questions in an organized process and format that helps you to successfully build an effective business plan in a step by step, building block fashion.
A good Business Plan is the most important, but most often overlooked, part of running a business, starting a business, expanding and growing a business, or obtaining finance for a business. If a Business Plan is well developed and written, the starting, expanding, running or financing a business is much easier and effective, leaving less room for error and failure. While you cannot predict everything that can happen in a company’s future, a good Business Plan helps you avoid certain pitfalls, overcome obstacles, while also anticipating and creating opportunities.
As a Business Planning Expert, I recognize that Formats are important for Business Planning but most important is the Process. The Process is a building block system that is continuous, systematic and comprehensive. It involves the entire Company, produces effective decision making and executes those decisions in a Strategic Plan. A good Business Plan measures the relationship between Expectations and Performance- it evaluates your Company’s progress or the lack thereof. A Business Plan’s goal is to create the future for your company, taking a proactive approach toward your target markets.
There are different Business Plan Formats for different purposes. Always start with a Comprehensive Business Plan to successfully run your business. Once you have completed your Comprehensive Business Plan, then you can take certain parts of that Plan to form the other ancillary Business Plans for other purposes, such as a Funding Business Plan for a Bank, Investor or Venture Capital Firm.
Admittedly many business owners don’t see the benefit of the business planning process until they are well in it, and some really don’t see the advantage until it is fully implemented and getting results. It is just a piece of paper, right? What difference can it make in my business? Great questions. Look at a business plan as a tool. If developed well and then used effectively, a business will enjoy the success of it. As importantly, a business plan sets up a tracking process for a company to really see how it is doing and having a program to track and gauge strategy. Prior to the business plan, the business owner was just guessing and spending money and effort with out real direction and purpose.
Tags: business plan formats, business plan template, comprehensive business plan, preparing a business plan, target markets