Why a Business Plan Sets you up for Success
Most aspiring entrepreneurs I’ve met have a great business idea, but they feel intimidated by what they don’t know and stuck with regard to what steps to take to actually make their goal a reality. When they hear the words “business plan” they cringe or freeze, because the idea of being forced to write down all the nitty gritty of their business idea, especially if they don’t have a business background, feels overwhelming. Here’s the deal; you don’t have to have a polished 50-page document to start your business and you probably have a lot of it is already in your head or jotted down. Putting these pieces together into a business plan not only helps to organize the information, but it allows you to challenge your idea, make any adaptations, fill in the gaps and get really focused on your strategy BEFORE you invest your time and resources further. While mistakes are inevitable, doesn’t it make sense to have a roadmap to help keep you on track and avoid costly errors before it’s too late?
What is a business plan?
A business plan is a working document. It’s not something you draft up and then never look at again. Quite the contrary; it’s a reference guide, full of valuable information about your business that can be referred to, added to and adapted as you go. When challenges come up, it can be a “north star”, reminding you of your why. As you work through your plan you will see how each section builds upon and connects to each other. For example, your target market and product positioning affect your pricing strategy. You wouldn’t believe how many entrepreneurs make early decisions without any real understanding of their customer, industry or market. Understanding the how and why sets you up for success. As you work through your business plan, you will come across things your hadn’t previously considered. This is a good thing! The more you understand your business, the more confident you will be moving forward.
A start-up business plan, typically consists of the following sections:
Cover letter or Executive Summary
Company Description
Description of your products or services
Marketing Plan
Operational Plan
Management & Organization
Startup Expenses & Capitalization
Financial Plan
Appendices
Optional: NDA
Within these sections are subsections that can be as detailed as you’d like or as necessary. Some of the subcategories may not apply to your business.
If the idea of writing a business plan is overwhelming, or if you have tried and feel stuck, consider working with small business coach to walk you through each step, providing guidance and support to tackle the difficult questions and be a sounding board for ideas and strategy. Just don’t skip this super valuable planning stage and don’t get stuck here when your dreams and freedom are waiting! Seriously, I’m here to help.
