Successful business leaders recommend that all business owners should have a business plan, and it pays to heed their advice. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years. Yikes! To avoid becoming one of those statistics, even small businesses need an easy-to-use plan to help them stay on course and minimize financial risk.
 
Creating a good business plan is like building the foundation of a house. Even the smallest structure needs a clear blueprint for success. You might have a good mental picture of how to proceed, but a formal business plan removes all areas of doubt. The small business entrepreneur who would try to start a new company without a business plan (is that you?) is practically doomed for failure.
 
If you’re a serious business owner, you need to document a realistic evaluation of start-up costs, tax laws, state business laws, projected profits, targeted customers, the status of competing businesses, and the overall economic picture. It’s also important to assess your innate skills and abilities as the owner, as well as the skills and abilities of any of your team members.
 
A well-executed business plan provides a clear, written vision of your future and a sturdy platform for healthy business growth. Like a map, a comprehensive plan can guide you and your employees to reach individually defined objectives in a reasonable timeframe. As each milepost is passed, a solid business plan provides a measure of your company’s current performance, and a well-defined path to the next step. If problems should arise, a business plan can help everyone keep things in perspective.
 
We recommend that our clients’ business plans project at least five years into the future, with detailed goals and financial predictions for each year of operation. Every persuasive argument possible should be included, without exaggeration or obfuscation to tip the scales in favor of success.
 
While you want a plan that’s “professional”, most small businesses don’t require anything too complex. In fact, we usually recommend a simple document that can be referred to and updated when needed. The key to a successful business plan is to actually use it as a tool. Refer to it often to determine where you are versus where you want to be. Make sure your current activities have you headed in the right direction, and if not, make the necessary adjustments. The power of your plan lies in the fact that it is a living document that you should interact with on a regular basis.
 
And if you’re ready to put your 2009 business plan together, be sure to refer to our guide 9 Incredibly Easy Steps To Planning Your Business Success.
 

Business Building Resources

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*** Additional Resources ***
 
Business Plan Workbook
 
How to Design a Display Ad
 
Web Site Checkup
 
How to Write Web Site Copy
 
Marketing Makeover
Now, go find some more clients!

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This entry was posted on Thursday, November 13th, 2008 at 9:57 pm and is filed under Business Success. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.