| If I suggested that you drive to a place you have | | | | businesses have a need for your product or |
| not visited before, without a map or a clear set | | | | service? And more importantly, how many are |
| of directions, you would probably tell me it was a | | | | likely to buy?A good starting point for your |
| bad idea. Why? Because without one of these | | | | research is census data and information from |
| tools it is likely you would get lost, arrive late, or | | | | your local chamber of commerce or commerce |
| perhaps never arrive at all.It seems obvious, if | | | | department. These broad studies will help you get |
| you are not sure how to get to your destination, | | | | a feel for the overall size of a community. |
| you need a map! And yet, every day I meet | | | | Surveys, focus groups and informal conversations |
| business owners who drive their businesses with | | | | with potential customers, even on a limited scope, |
| no map nor a clear set of directions. The result - | | | | will help you evaluate the market.Know the |
| they get lost, fail to meet their objectives, or fail | | | | CompetitionEveryone has a competitor. Even the |
| completely. As a small business owner, you need | | | | most unique and innovative products must deal |
| a business plan! Without it, you are traveling | | | | with competing products or services items that |
| blind.Get Started Now!Do not put off writing your | | | | may or may not solve the same problem, but will |
| plan for someday, when you have the time. You | | | | compete for the end-customer's available |
| will never have enough time, unless you make it. | | | | resources. Failing to take the time to understand |
| The busier you are, the more you need a plan to | | | | how potential customers are solving their |
| streamline your decision making process and | | | | problems today will make it harder for you to |
| automate your day-to-day operations.Building a | | | | convince them to switch to your solution in the |
| plan does not have to be overwhelming or | | | | future.Establish Meaningful Goals and Milestones as |
| incredibly time consuming. Take the simplest | | | | a Basis for Action |
| approach to get started; you can always refine it | | | | Often the road to achieving your goals is a series |
| along the way.Get your thoughts on paper, and | | | | of small steps. Outlining a time frame for these |
| then revise them. Too often people get stuck | | | | interim steps or milestones will help you track |
| trying to make the first sentence perfect and | | | | progress toward the goal. Every small business |
| never get to the second page. Do not let that | | | | faces challenges and obstacles on the Road to |
| happen to you! Do not get hung up on grammar | | | | Success. A good business plan outlines the |
| or spelling. This first draft is for you. It does not | | | | possible obstacles, critical risks and alternative |
| have to be a Pulitzer Prize winning novel or a | | | | approaches a company can take to achieve its |
| doctoral thesis.Limit the Details! There is a story | | | | goals.Your goals should be challenging, but |
| about an impatient young man who went to visit | | | | attainable. Goals should be specific and measurable. |
| an old Bible scholar. He demanded the old man tell | | | | These quantifiable targets give you something to |
| him everything he needed to know about the | | | | work towards, and measure your progress |
| Bible while standing on one foot. The old man | | | | against. Finally goals need to be time based. Do |
| smiled, stood on one foot and said, "Do unto | | | | you expect to double your sales in one year or |
| others as you would have them do unto you! All | | | | five?As you construct your goals, leave out the |
| the rest is commentary."Why do I include this | | | | vague and the meaningless babble of business |
| story in an article about business planning? It is | | | | phrases (such as "being the best") because they |
| not because I think business owners require divine | | | | are simply hype. The objective of a plan is its |
| intervention (although maybe sometimes they do). | | | | results, and to create results, you will need |
| I include the story because it contains a wonderful | | | | measurable goals and deadlines. This will lead to |
| lesson for business owners.Regardless of what | | | | the creation of a timeline for your action plans, |
| you believe about the origin of the Bible, most | | | | definition of management responsibilities and |
| people agree it is a complex work with multiple | | | | framework for your budget.Your goals, once |
| themes and messages contained in its pages. And | | | | established, form the basis of other decisions. If |
| yet in a few words, the old man summarized the | | | | your goal is to double sales in three years, your |
| content, presenting it in a form many people | | | | plan must include an explanation of the resources |
| would agree captured the essence of the | | | | required to support the additional volume and the |
| document.The lesson is simple; as you write your | | | | marketing activities needed to generate the |
| business plan, imagine you are writing for an | | | | additional sales.If your goal is the destination, the |
| impatient young man and try to meet his | | | | action plan is your roadmap. Which route will you |
| challenge. Boil down the description of your | | | | take? How much fuel will you need? How many |
| business to a simple message, deliverable while | | | | hours will it take to arrive? What landmarks will |
| standing on one foot. Too often, particularly in the | | | | you use to tell you if you are heading in the right |
| product description, owners get bogged down in | | | | direction?Make Sure the Numbers Add Up and |
| the detail, providing way too much information for | | | | Plan for the WorstAs a rule, we entrepreneurs |
| the reader.Limit the product description section of | | | | are optimists. We start businesses, not because |
| the plan to a simple overview of your product, | | | | we have a high tolerance for risk, but because |
| the problem is solves and its unique features. | | | | we believe in our idea, product or service. We also |
| Information regarding variations or new features | | | | believe in our ability to make the venture |
| to be added should be included in the product | | | | successful.This optimism, however, is often not |
| strategy. Product specifications, charts and graphs | | | | supported by the facts. Unrealistic financial |
| regarding product performance and detailed | | | | projects, with a hockey-stick shaped growth |
| sketches and descriptions belong in the appendix. | | | | curve, can set a business up for failure as owners |
| The same is true for the management section, | | | | spend too much too soon without enough cash |
| summarize your career highlights and put the | | | | reserves to help the business through the |
| detailed resume in the appendix.Research is | | | | start-up phase. As you develop your financial |
| important, but don't get bogged down in the | | | | projections, consider two scenarios, a best and |
| details. As your review your research, select the | | | | worst case. Can you handle the volume and |
| most relevant facts which support your plan of | | | | capacity demands of a best case scenario? And is |
| attack. Also include references to your sources | | | | the idea still viable in a worst case?Stuff happens! |
| (so the reader can check your facts).Clearly | | | | Things go wrong. When they do, will you be |
| Define Your CustomerEveryone is not your | | | | prepared? Having an adequate assessment of |
| customer. Too often small business owners, afraid | | | | risks is not being negative, it is being prepared. |
| to walk away from even one potential customer, | | | | Create a list of the pitfalls, regulatory issues, |
| try to define their market so broadly that they | | | | competitive challenges and changing marketplace |
| include everyone. The danger ... Without a focus | | | | conditions which might adversely affect your |
| you end up spreading yourself so thin that you | | | | business. Once you identify the challenges, then |
| don't effectively reach any particular | | | | you must develop action plans, safety measures, |
| customer.The chiropractor who defines his target | | | | and insurance policies to protect the lender, |
| as anyone with a spine may think he is indicating | | | | investor or you!Share your VisionAs you write the |
| to potential reader that he has unlimited potential. | | | | plan, involve anyone who will be affected by the |
| In reality, he is showing a lack of understanding of | | | | plan. Seek advice from people your respect. Talk |
| the buying characteristics, beliefs and bias of | | | | to employees, family members, business partners |
| consumers in his market. There are large groups | | | | and advisors such as your accountant and lawyer. |
| of people who do not believe chiropractic | | | | Ask their opinions and communicate your goals. It |
| treatment is "real medicine." It is not prudent to | | | | is easier to steer a boat if everyone is rowing in |
| spend money trying to convert non-believers. | | | | the same direction.As you develop your plan |
| Selecting a narrower market would allow him to | | | | remember, it doesn't matter how simple or |
| concentrate his marketing efforts on those | | | | complex it is; the process, not the finished |
| customers most likely to buy.Once you truly | | | | product is important. Your plan does not have to |
| embrace the idea of focus as the key to a | | | | be perfect. It can be as elaborate as an MBA |
| successful business, you are ready to start | | | | thesis or as simple as a few double-spaced pages. |
| developing the rest of your plan. With a clear | | | | What is important is that the plan exists because |
| definition of your customer, it is easier to answer | | | | you took the time to answer tough questions |
| the questions that follow.The operating plan for a | | | | about your business.Actually, a good business plan |
| chiropractor, hoping to work primarily with | | | | is never finished. The best business plans are not |
| athletes suffering from sports related injuries, will | | | | beautifully bound documents gathering dust on a |
| be dramatically different from one developed for | | | | shelf. They are tattered and smudgy from |
| his associate who is focusing on individuals dealing | | | | frequent use as a road map, showing where a |
| with pain as a result of a car accident. Location, | | | | business is going and how it plans to get there.A |
| hours of operation and types of advertising and | | | | twenty year veteran of Corporate America, |
| promotion will all be driven by the choice of a | | | | Lorraine Ball helps believes every business can |
| target audience.Do Your HomeworkDoes anyone | | | | improve profit through planning. And when it |
| really want your product? Anyone other than | | | | comes to marketing, it is not how much you |
| your mom, wife or best friend? Too often | | | | spend, but how well you spend it that makes the |
| innovative entrepreneurs become enamored with | | | | difference.Her marketing firm, Roundpeg helps |
| their technology, product or idea and fail to look | | | | small business owners find a starting point for |
| at the larger community. How many individuals or | | | | growth and change. |