Many books have been written on how to write an "effective" business plan and most provide good advice. As well, but many people will still argue that the business plan is a planning document…... However, after a while I strongly believe YOU will start to believe the business plan. Planning and starting a business is a little like climbing a mountain. It is a perilous journey, fraught with unknown dangers and influences outside your control. But if you keep your goal in sight and plan very, very carefully, getting to the top can be a most rewarding experience…… That’s for sure!
WHY PLANNING?
Planning is mandatory for business success. As they say, "fail to plan is planning to fail”. This statement, or something similar, has been made in just about every business books or tips ever written ... and many entrepreneurs still don't take it seriously!
Lack of planning is the cause for the majority of business failures. Yes! It’s true, I was once a victim to that.
Planning is difficult because there is no immediate feedback as to its value. But if you think of starting and operating your business in the same way you might think about climbing the mountain that I mentioned earlier at the beginning.
If you plan for these events, you will be able to deal with them and still reach top of the mountain in spite of the setbacks. If you fail to plan, you will not be prepared to meet problems that happen due to circumstances beyond your control. This can be disastrous. If you take the time to plan carefully, you will anticipate more of the potential problems, find solutions, and be able to achieve your ultimate objective.
Again, one of the major elements contributing to business failure is the lack of entrepreneurial qualities. So what are they? Do you fit the criteria? Don't put your head in the sand on this issue. Starting a business is tough and it is very important that you determine early on if you have the "right stuff." Better you find out now what qualities you may need to strengthen rather than finding out once it is too late.
ENTREPRENEURIAL QUALITIES
- Are you in good health?
- Are you organized?
- Are you a risk taker?
- Are you a high-energy person?
- Are you self-confident?
- Are you competitive?
- Are you prepared to work long hours, every day for an indefinite period?
- Do you have adequate resources?
- Do you have a unique service or product?
- Is your spouse on board with your ideas?
- Are you willing to make short-term sacrifices in return for long term success?
- Are you a good communicator?
- Do you have adequate experience?
CHECKLIST FOR CHOOSING A BUSINESS THAT CAN BE SUCCESSFUL FOR YOU.
- Is this the kind of work I really enjoy?
Look to your current interests. Many successful small businesses grow out of hobbies because a hobby is chosen for all the right reasons ... you enjoy the task, the challenge, the time spent.
- Do I have the required technical expertise?
Don't get involved in a business if you know little or nothing about it. When you have the necessary technical expertise, you can ask the right questions, make good business decisions and assess other "expert" opinions.
- Can I make enough money in this business?
First, your financial goals should be realistic. Then look around at similar businesses to see how they are doing. Talk to the owners. Most will give you enough information for you to decide if it's right for you financially. This will help you to pick a business that can satisfy your financial goals.
- Can I get the help I will need?
If your business is not going to be a one-person operation, you need to find out if the right kind of help is available in your immediate area. Are there similar businesses in the area? Also check with local employment agencies.
- Do I understand the market?
Will you be able to find customers? Do you have the knowledge required to set prices appropriately? Will you be able to direct a marketing program? (You might not do this yourself, but you may have to manage the effort).
Starting a business without a business plan is just foolish. Therefore, starting a small business venture where little or no formal investment is needed, you need a plan for YOURSELF ... A HONEST plan for you. You need a strategic plan.
THE STRATEGIC PLAN
A strategic plan is your plan for success. It will define your business mission, your present situation, and where you want to be in three to five years. A strategic plan, like the traditional business plan, should be well-structured, and include a number of short succinct statements covering the following areas:
- Vision Statement
- Mission/Purpose Statement
- Scope of Business
- Assumptions
- Goals and Objectives
- Risks
- Strategies
- Progress Reporting Methods
Every statement in your strategic plan will be important since it defines what your business will be, what your objectives are, and how you intend to achieve these objectives. If you find you cannot write about the areas stated above, then, you need to stop and think carefully about your situation until you can. A strategic plan will allow you to anticipate problems and to make decisions that will help you meet your business goals and objectives. Without a clear goal in mind, the best decision may not be obvious and you are reduced to guessing.
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