A business plan. Get writing if it isn’t done….
Aspirations written down are more likely to become reality. In “business-speak,” the document that speaks to the aspirations of an entrepreneur/business owner is THE BUSINESS PLAN.
There are many business people who believe that THE BUSINESS PLAN isn’t necessary to do, but we at Precise Advisory Group, know that it is very important. Just the act of outlining your business plan is an excellent exercise to guide your thoughts on implementing your business strategy. If you can’t articulate it briefly on paper, you probably will have difficulty doing it in real time.
A plan can take on many shapes and sizes; the simple back of the envelope to a tome the size of “War and Peace.” We don’t advocate either, but a document somewhere in between best suits the purpose.
The point of the exercise is to memorialize the plan for your business and to thoroughly think through your strategic approach. Many people who evaluate your business (investors, clients, potential employees, suppliers) will ask for your business plan to determine whether you are “real” or just “blowing smoke.”
Your business plan document must answer the following questions:
- What will your business do?
- Which markets does your business serve?
- Who are your customers?
- With whom will your business associate?
- When will your business move to the next level - grow, decline, acquire etc.?
- Where will you conduct business?
- Why does your business exist?
- How does your organization define success?
The follow-up questions are as important as the list above. That is because you/your team of advisors must challenge your assumptions, expose where market research is lacking, and cause you to explore whether you really know what your potential customers want or need. With a little expert coaching and research, you will be able to better identify, source and budget for all the resources needed to save you time and money, while lessening the risk of failure.
An excellent business takes hard work and, if you are not sure how to proceed, ask. These are our thoughts on the importance of A BUSINESS PLAN, let us know what you think.
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