Undoubtedly you’ve heard the phrase “failure to plan, plan to fail.” Sure it may be true, but who has time for it? Running a small business takes all our time and energy, the last thing we want to do is a business plan.
You may have the impression that preparing a business plan is intimidating and the only time you’d need to bother with preparing one is when you must apply for a business loan. True, banks need a formal business plan in order to consider you for a loan and often times it’s a good idea to get some help to prepare the document in a thorough and professional way. The professionals in organizations like SCORE are a great resource to help you prepare such a formal document.
But today we aren’t talking about a formal document. Even the smallest business needs a plan. It doesn’t have to be formal. It certainly doesn’t have to be long. It’s simply a way to have you think about your business and become clear on your direction.
As a small business, the only person in your business may be you. Your business plan serves as your goal-setting document and the foundation for your marketing message.
In today’s episode, Sharon and I talk about the components of a business plan. We discuss the importance of the K.I.S.S. method (keep it simple silly) when it comes to your business plan.
All the components of a formal business plan can be scribbled on a piece of paper or typed up in a document. For me, I use an Excel spreadsheet. The sections don’t have to be long, and often times may be one sentence.
A few years ago, when I strayed off course and was frustrated with my business, I realized that I needed to pull out my plan and really think how I wanted my business to take shape. I know how important making a plan is, but truthfully I get busy just “doing” and put off going back to my plan. That’s why I implemented a system to hold myself accountable.
In the show, we go over each section in a little bit more detail and give examples of how I address each in my small business. We also discuss who I’ve recruited to hold me accountable so that I make time to pause and plan.
Sections of a Business Plan
- Business Description
- Products and Services
- Sales and Marketing
- Operations
- Management Team
- Development
- Financial Summary
