Some companies have a 100 page business plan while others have a simple few sentences. What is the right business plan for you? Do you even need one at all?
Yes. The answer is absolutely yes. A business plan is intended to define what your business is/wants to be. When it comes to knowing who you are, even a few sentences are better than none. Business plans should have three sections: business concept, marketplace, and financials.
Business Concept
Knowing your purpose and direction allows you to understand what you need to do to get there. Clarify what it is that your business does, what you sell, and who you sell it to. Once you know where you are at, always update your plan with where you are going. Update it with what you want to see in the future.
Marketplace
Your business plan will show the organizational structure of your company. It acts like a management tool to ensure that your company is on course. Business plans aren’t just for you though. In fact, they can be a great sales tool to bring in better partners, secure clients, attract investors, etc. This is your chance to show people the potential of your business without having the giant office space to schmooze them in.
Financials
First things first, know your numbers. Too many entrepreneurs are unsure of what their true numbers are. *Startegy can help soothe this problem btw* So do yourself a favor and know your metrics. And according to the Small Business Administration, ‘The development of a comprehensive business plan shows whether or not a business has the potential to make a profit.’ Having statistics and facts in writing has a greater chance of attracting investors.
Things are always changing, but that doesn’t mean you can’t have a good plan in place. Companies are constantly facing the challenges of new regulations, increased competition, advanced technology, and company growth. It is how you deal with those events that will set you apart. So have a good strategist, learn to adapt, keep a good savings on hand, and always update your business plan.
