Your business plan documents how your business will develop and should illustrate both vision and credibility. Increase your odds of success with the answers to these key questions.
- “Why should I write a business plan?” It’s not about “checking the box” or just getting financing – it’s really about the journey of self-discovery. The more you understand your business, the better you can manage and grow it, as well as articulate it to customers and partners.
- “How can I write a plan with so many variables in my business – I’d just be guessing, wouldn’t I?” Some people are afraid of wasting time writing a plan that immediately becomes obsolete. But if your business is really complicated or changing fast, it’s even more critical to consider all the key plan elements and the execution process. You need a business and financial model as a management tool. A much bigger waste of time is flying blind without a plan or model.
- “How do vision and values factor in to the plan?” Your vision is the target that your plan is shooting for and you should be able to articulate more detail than just a vision statement. Your values could impact your marketing, messaging, hiring, processes and systems, etc. In other words, vision and values are both very important to your plan.
- “Why does it have to be so hard?” It doesn’t. There are lots of templates, resources, and software packages out there to keep it simple. Many come with sample plans in a variety of industries. If a blank page scares you, start with a sample and start editing instead. Let the software guide you through the entire documentation process, providing explanations and examples at every step.
- “How do you know when the plan is complete?” After you’ve created a first draft, review it and edit it as best you can as a neutral outsider. Get professional feedback (not necessarily friends and family) and then edit some more. When all the pieces of the plan tell one cohesive story – and the plan points to your vision and vice versa – then you’re ready to start managing to it.
- “Why don’t the plans get used?” Rarely do you see instruction on managing to a plan after it’s written. Plus, it’s easy to get sucked into working in your business vs. on it. Again – planning is a journey and execution is a process. Make time to update your financial forecasts, assumptions, and infrastructure needs regularly.
Don’t shortchange yourself. The insights you gain from this process are a huge return on your investment.
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Edward Livesay
Co-Founder & Strategist at Mosaic Strategic partners
Edward Livesay is a business and financial strategist with over 16 years of consultative experience. His work has generated millions of dollars in growth and savings for business and government clients.
