Trying to run a business without a business plan is like driving blindfolded. Odds are that you won’t get to where you want to go and the journey will be a death-defying one. By creating a business plan you are creating a step-by-step process to running your business. Although it is worth remembering that while having a business plan in place can be be a useful road map, you still need to make sure that you and it can be flexible when you need to be.
While you don’t need to have a formal business plan to navigate in the marketplace, you should have a workable business plan for the good of the business owner, employees, clients/customers and any other stakeholders. A business plan minimises risks and surprises.
When writing your business plan, you should consider including the following:
- Understanding of your product/service and it’s place in the market,
- Understanding of your target market,
- A reasonable expectation of profitability and timeframe,
- A list of estimated expenses,
- An understanding of how many staff you will need
- An understanding of a possible business structure,
- A pricing strategy
Many business owners will have a fair idea of this but it is good to get it down on paper and have a document that you can refer to and share with those that you may need to. A business plan will give you:
- The ability to determine and coordinate all aspects of business operations,
- Give space and data to help you analyse to develop the best plans to boost your business,
- Provide an opportunity to determine risks and benefits,
- Because you have been able to identify risks ahead of time a business plan will minimise your chances of making a mistakes,
- Increase your chance of success.
So, do you have a Business Plan? If not, consider discussing the need with Stuart Coulthard or Mark Debeljak.