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