Do You Really Need a Business Plan?

"I don't need a business plan."

Neither did Alice in Wonderland.

"Would you tell me, please, which way I ought to go from here?"

"That depends a good deal on where you want to get to," said the Cat.

"I don't much care where," said Alice.

"Then it doesn't matter which way you go," said the Cat.

As a consultant, I have people ask me "How can I increase my business?" The answer is often easier than they think. But before figuring out how, they must decide where they want to take their business. This is why everyone in business should have a business plan, not just the people seeking venture capital.

Your business plan will be the "road map" of your enterprise. It will show you how to get to where you want to go. To develop a good plan, you need to write down the answers to quite a few questions.

To get you thinking, let's jump twenty years into the future. Describe your life. Are you still working or are you retired? Are you worth a lot of money? If so, how is your wealth distributed? Stocks? Bonds? Equity in your business? Other businesses? Are you an independent consultant or do you have a company? How large is your practice/company? What is your annual revenue (in today's dollars)? How many hours per week do you work? Do you work on weekends? Do you travel? And most importantly, are you happy?

Tough questions? Maybe. But they need to be answered honestly and realistically. I know that life can hit you with some unwelcome surprises that might change the way you want things to be. It is because of these changes, however, that you should re-evaluate your plan every two years -- about as often as you replace a pair of daily-wear shoes.

After defining your long range goals, break them down into ten year and five year goals. Make sure they are consistent with your twenty year plan. The next step is to determine what you need to do to achieve your goals.

Here are some short-term questions you should think about: Do you want more customers or steady customers? What is your competition doing? Will advertising help increase your profit? If so, what kind of advertising and what media should be used? Think of your own questions.

Your specific marketing strategies will depend on your individual goals (once you have an idea of where you want to take your business). Put your answers down on paper! Organize your thoughts, questions, and concerns. If you have financial data, use it. You don't have to take your plan to the bank, but by recording your income and expenditure you will have a benchmark to use when you review your goals and accomplishments. Business plans often follow a general format. You can modify this one to suit your exact needs.

  • Executive Summary
  • Company Profile (including mission statement that describes your business and why you are in it)
  • Competitive Analysis
  • Marketing Strategy
  • Staff Qualifications
  • Financial Information
  • Appendices (containing any additional information you would like to include)

    Review your plan for consistency. Is it coherent? Is it realistic? This is your guide to your business. It will help you get what you want. Keep it updated. Change it as your goals change or as the market changes. Remember, a little planning will take you a long way.

    Raj Khera is a partner in MoreBusiness.com, a comprehensive resource for small businesses. Find tips, articles, ideas, templates, worksheets, sample business plans, tools, financial benchmarks, sample contracts, and much more to help grow your business.

    Copyright 2005 Raj Khera. All rights reserved.

    In The News:

    • pen paper and inkwell


    cat break through


    Top Ten Traits of Strategic Thinkers

    Want to become more strategic? Add these traits to your... Read More

    Bounced Checks in Your Business Location Outlets

    The new check cashing instant clearing will take some time... Read More

    Benefiting from Strategic Thinking

    I recently took an organizational behavior class where my professor... Read More

    The Chasm of Change---- Restructuring ----- The Goliath

    Richard L. Daft one of the country's recognized academic leadership... Read More

    Designing an Efficient Distribution System

    Let us look at a few of the big distribution... Read More

    Insurance Requirements in Franchised Companies

    Franchised companies often require what some believe to be excessive... Read More

    Fail to plan... or Plan to FAIL??

    Running a business, whether it be an offline multi-billion dollar... Read More

    How to Start A Business Plan

    A business plan precisely defines your business, identifies your goals,... Read More

    City of Cortez and South Western Colorado Market Survey

    We have been spending many hours surveying the market for... Read More

    Questions to Ask Yourself When Starting a New Home Business

    I love the excitement of starting up a new home... Read More

    Seasonality: Whats the Big Deal?

    Do you work in or own a business that's affected... Read More

    During the election we heard about Ohio?s Economy

    Much of what we heard in the mass media about... Read More

    Writing a Business Plan for Success in Business and for Funding

    Writing a business plan to help you direct and manage... Read More

    The Tables Have Turned - Its Officially a Sellers Market

    Private equity firms have raised so much capital over the... Read More

    Three Easy Ways To Know Thy Competitor

    "Did you hear what your competitor is doing?" This question... Read More

    Why You Need a Business Planning System NOT a Business Plan

    When someone mentions business planning we have been conditioned to... Read More

    Completing the Annual Planning Process

    Imagine an office without a desk, or lights, a computer,... Read More

    Abstract Thought; Business Strategies and Biological Systems

    To stop a computer virus you must understand how it... Read More

    Ten Steps To A Great Strategic Plan

    Ask a small business owner about their strategic plan and... Read More

    Menu Driven Business Planning

    A menu is the foundation of any restaurant; Guests will... Read More

    How to Snuff Out the Competition Without Leaving a Mark

    Does the competition drive you crazy?Are they relentless about taking... Read More

    In Business Planning, Competition is Good

    When developing the competition section of your business plan, companies... Read More

    Invalid Excuses for Poor Business Results - Rising costs

    Note to Northwest Airlines ? It's not about fuel costsFor... Read More

    Shortening Product Life Cycle!

    The current state of the available technology at the disposal... Read More

    Your Business: Will It Have A Happy Ending?

    "Begin with the end in mind," says Stephen Covey in... Read More

    Business Process Methodologies

    I've either been involved with or held a process-related role... Read More

    Documenting the Exit Strategy in Your Business Plan

    All investors greatly desire and are motivated by a clear... Read More

    How Good Is a Business Plan To Your Business?

    You know you need a business plan. You probably realize... Read More

    Vendor Relations Strategies Sample Outline

    One of the quintessential parts to any business is your... Read More

    The Magic Of Exponential Business Growth

    Is there a 'magical' way to exponentially grow your business?It's... Read More

    Sample Business Plan Outline

    If you are looking for a partner, funding, angle investor... Read More

    3 Undercover Ways to Make Big Profits from Your Competition

    You have heard that there is extra money on the... Read More

    Own Your Niche by Building a Niche Community

    In 1997, David Steele was making the transition from a... Read More