QUESTION: Do You Need a Business Plan?

Hi,

That’s a wonder full write up. Thank you.

Sticking to business plans does help. But you got to innovate and adapt too. Above all else you should set the industry standard. You must create, do or introduce some thing that becomes the trend in the Industry.

That proves your leadership. If you follow that 1970 garage startup you will realize even now they are setting the trends. The rest just follow them.

We created a business plan when we started. We needed it for a lot of reasons - not just to know what we wanted to do and how we wanted to do it. But a lot of suppliers, investors, even potential employees wanted to see it - they wanted to know we were organized, ambitious, realistic and determined. The business plan helped them see where we wanted to go and decide if they believed we would get there. Each year, we would revamp it, update it, change it. We weren't wedded to it - it was a "plan" not set in concrete. But it enabled us to communicate one way and set the tone with one strategy. It worked for us. 

@Sangeethmathew and @LeslieBarber, you bring up such great points! It's important to innovate and think creatively, but we're also earthbound by the fact that our would-be supporters/investors may not be sold on our vision just yet. How to reconcile the two? Is it our challenge then to write up that solid, well-researched business plan...and know when (and how) to let it go?

This is an interesting post! As @LeslieBarber said when we first started and tried working with suppliers and coming from a new business they wanted to know if we had a plan. We actually had a hard time projecting income/expenses when we first started and so far have made an income/expense projection every year. And also beat it every year! :)

@jessbru99568, congrats on your year-on-year success!!

Setting smart goals for a new business can be especially tough. Is it better to "under-promise and over-deliver" for the benefit of suppliers/partners, or set more ambitious goals at the risk of falling short? Maybe a bit of both?

@EmilyCowan we tried to make it right on based on how the business was currently running in cash flow, etc.. However, I do believe its better to underestimate then over, for the fact that you can then show the projection and compare with the actual. 

@jessbru99568 totally agree. When I was selling advertising space for a new online publication a lot of the projections were based on very educated guesswork. In those situations I downplayed (just a little). It's always nice to be able to go back to a new client and say you exceeded expectations!

As applicable to business planning I think setting realistic goals help demonstrate your understanding of the market and your current and/or potential position within that market. It's a valuable exercise whether you end up sticking to it or not.

Hi  tattat,

To get to my work I travel by the tube at times. The journey is and hour and a half long. In order to pass time I like a lot of people fiddle with my smart phone. In doing so I discovered an app called Googel Primer (a learning app) on the Google Play Store. This app has a whole load of lessons on Business Plans and many other things. 

If you have the time it would not be a bad idea to download this on to your mobile. It could give you some very useful tips on how to Plan your business. Best of Luck. 

When I have written business plans, I borrowed an idea I learned during a brief stint at a literary agency. When writing a non-fiction book, most publishers want to see a proposal (not a written manuscript yet), and one of the biggest sections in the proposal is "Competition Evaluation" or, why are you writing another book about diets, happiness, child rearing, etc.??

Forcing yourself to look hard at the similar competition and describe WHY you're different, WHAT you'll add to a crowded market, HOW you'll fill a particular niche, and WHO will this speak to who isn't already being addressed, and the WHEN being why is this imporant at this specific point in time, really forces you to understand your business, the market and your customer. I found it a great place to start. 

By all means a business needs a business plan. It's how you organize your organizations and communicate what your intentions are, the scope of your work, and what success looks like for your efforts. Business plans also can stop you from making mistakes that could doom the success of your business - like failing to pay yourself, or taking too much money out of the business for personal expenses. 

Your business plan should grow and change with your business. Nothing is carved in stone. 

A business plan demonstrates financial literacy and competency. It demonstrates that you understand where money needs to go, and how to project income. How can you expect anyone to lend you money or extend credit if you can't demonstrate adequate planning skills and money management?

Hey @AlexLuken - totally agree that a smart business plan must be flexible enough to adapt to changing circumstances. Nothing is set in stone!

We have many wonderful business plan and choose best to execute to get the better result, but sometime we are not satisfy from our decision. We learnt somethings from that decision and create a story to share with friends and partner to don't repeat in future. 

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@EmilyCowan wrote:

We all love stories about scrappy entrepreneurs who got their start by happy accident - a chance meeting, a burst of inspiration, a technological advance in, ahem, a 1970s garage. But then what? How did these successful innovators set smart goals to take their idea to the next level? Is there a sweet spot somewhere between strategy and seat-of-the-pants? We'd love to hear from you....

 

Do you have (or think you need) a business plan? If you've created one, are you sticking to it?

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@EmilyCowan wrote:

We all love stories about scrappy entrepreneurs who got their start by happy accident - a chance meeting, a burst of inspiration, a technological advance in, ahem, a 1970s garage. But then what? How did these successful innovators set smart goals to take their idea to the next level? Is there a sweet spot somewhere between strategy and seat-of-the-pants? We'd love to hear from you....

 

Do you have (or think you need) a business plan? If you've created one, are you sticking to it?

Hi, 

I think that's my biggest problem start a business without a profesional plan.

I just did it with the confidence of my experience, (big mistake) and now trying to recompose my direction and looking for advise before is too late.

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@Baker1, you've come to the right place! Many of our members have been in your shoes and can offer help and guidance as you progress on your small-business journey. 

If you haven't yet done so, you may want to check out our Starting Up board for some insight. You can also visit our Finding Inspiration board for profiles of small business owners who have "been there, done that."

What's top of mind for you right now in terms of getting your business off the ground?

@EmilyCowan nobody should go into business without first creating a business plan!! It is so important to have a road map for success and get your vision on paper. More importantly, the business plan will be necessary for many business reasons, such as getting start-up or working capital loans if need be. I won't continue to reiterate how important a business plan is, because a lot of awesome points were already made in this discussion!

Likewise, SMART goals are uber important to a person's success. That is why they are a mainstay in business and management courses! Who will be more successful; The person that says "I have a goal of $500k in revenue this year", or the person that makes the same statement, but put in the work to make the goal specific, measurable, attainable, relevant, & time-based? SMART goals are a great tool for any aspect of life/business that needs to be improved!

Love that, @Peter_G_Stone! Business goals should be Specific, Measurable, Attainable, Relevant, and Time-Based.

I think of all these parameters, Relevance is the toughest to determine. Benchmarks in annual revenue, sales volume, etc. - these are all worthy goals for different businesses at different stages of development. It's all about knowing where your business is going and have a plan for getting there.

So, a business plan is a set of long-term goals made up of a bunch of SMART shorter-term benchmarks along the way. How do you go about playing the long game?

@EmilyCowan the only way to achieve long-term goals is to crush the short-term ones along the way. If the short-term goals are not being achieved, the LT won't be feasible. There is nothing wrong with modifying goals if they are not being attained. This is how businesses learn, grow, and thrive. Also, goals need to multiple. A business can't achieve one goal and be satisfied with that.