The Value of a Business Plan

Someone once wrote: "Most small business owners would tattoo 'idiot' on their forehead before they would develop a business plan!" I tend to agree with that person, but I also want to change that perception. I think the primary reason most entrepreneurial Small Business Owners have such a poor regard for a business plan (BP) is that they automatically associate a BP with the painful experiences they imagine they will go through when they take it to their banker.

It doesn't have to be that way! In fact, the best use of a BP is to keep it to yourself and use it to track your success in your business. How many entrepreneurs have started a business with boundless enthusiasm for what we were going to achieve? How many of us still have most of those 'achievements' buzzing around in our heads? If only we could find the time to take action on them. A BP will help us do that.

A BP is nothing more than putting down on paper, your business:

* Goal (Mission Statement)
* Objectives (How I'm going to achieve my goal)
* Products/Services (How I'm going to make money)
* Sales/Marketing Plan (How I'm going to convince people to buy my products/services)
* Operations Plan (How I'm going to spend money to make money)
* Management Plan (How I'm going to make sure all this happens)
* Finance Plan (How I'm going to keep track of it all)
* And most Importantly, Key Performance Indicators (what you're going to measure over time to prove your success)

From a technology point of view, documenting your technology requirements in the BP ensures that you spend your technology dollars wisely. There should be a good fit between the technology and the Operations Plan, otherwise you may find yourself rebuilding the technology as your business grows or evolves. By planning ahead, you can ensure that the technology can and does grow with the business.

And now that you've got all of this out of your head and on paper where you can see it, you can review it regularly to measure your successes and correct anything that is hindering success. Then, when you are ready to expand your business, you will have a proven BP that you can take fearlessly to your banker and with confidence, show why lending to you is money well invested.

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