Do You Have A Business Map?

If I suggested that you drive to a place you havebusinesses have a need for your product or
not visited before, without a map or a clear setservice? And more importantly, how many are
of directions, you would probably tell me it was alikely to buy?A good starting point for your
bad idea. Why? Because without one of theseresearch is census data and information from
tools it is likely you would get lost, arrive late, oryour local chamber of commerce or commerce
perhaps never arrive at all.It seems obvious, ifdepartment. 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 meetSurveys, focus groups and informal conversations
business owners who drive their businesses withwith 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 failCompetitionEveryone has a competitor. Even the
completely. As a small business owner, you needmost unique and innovative products must deal
a business plan! Without it, you are travelingwith competing products or services items that
blind.Get Started Now!Do not put off writing yourmay or may not solve the same problem, but will
plan for someday, when you have the time. Youcompete 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 tohow potential customers are solving their
streamline your decision making process andproblems today will make it harder for you to
automate your day-to-day operations.Building aconvince them to switch to your solution in the
plan does not have to be overwhelming orfuture.Establish Meaningful Goals and Milestones as
incredibly time consuming. Take the simplesta Basis for Action
approach to get started; you can always refine itOften the road to achieving your goals is a series
along the way.Get your thoughts on paper, andof small steps. Outlining a time frame for these
then revise them. Too often people get stuckinterim steps or milestones will help you track
trying to make the first sentence perfect andprogress toward the goal. Every small business
never get to the second page. Do not let thatfaces challenges and obstacles on the Road to
happen to you! Do not get hung up on grammarSuccess. A good business plan outlines the
or spelling. This first draft is for you. It does notpossible obstacles, critical risks and alternative
have to be a Pulitzer Prize winning novel or aapproaches a company can take to achieve its
doctoral thesis.Limit the Details! There is a storygoals.Your goals should be challenging, but
about an impatient young man who went to visitattainable. Goals should be specific and measurable.
an old Bible scholar. He demanded the old man tellThese quantifiable targets give you something to
him everything he needed to know about thework towards, and measure your progress
Bible while standing on one foot. The old managainst. Finally goals need to be time based. Do
smiled, stood on one foot and said, "Do untoyou expect to double your sales in one year or
others as you would have them do unto you! Allfive?As you construct your goals, leave out the
the rest is commentary."Why do I include thisvague and the meaningless babble of business
story in an article about business planning? It isphrases (such as "being the best") because they
not because I think business owners require divineare 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 wonderfulmeasurable goals and deadlines. This will lead to
lesson for business owners.Regardless of whatthe creation of a timeline for your action plans,
you believe about the origin of the Bible, mostdefinition of management responsibilities and
people agree it is a complex work with multipleframework for your budget.Your goals, once
themes and messages contained in its pages. Andestablished, form the basis of other decisions. If
yet in a few words, the old man summarized theyour goal is to double sales in three years, your
content, presenting it in a form many peopleplan must include an explanation of the resources
would agree captured the essence of therequired to support the additional volume and the
document.The lesson is simple; as you write yourmarketing activities needed to generate the
business plan, imagine you are writing for anadditional sales.If your goal is the destination, the
impatient young man and try to meet hisaction plan is your roadmap. Which route will you
challenge. Boil down the description of yourtake? How much fuel will you need? How many
business to a simple message, deliverable whilehours will it take to arrive? What landmarks will
standing on one foot. Too often, particularly in theyou use to tell you if you are heading in the right
product description, owners get bogged down indirection?Make Sure the Numbers Add Up and
the detail, providing way too much information forPlan for the WorstAs a rule, we entrepreneurs
the reader.Limit the product description section ofare 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 featuresbelieve in our ability to make the venture
to be added should be included in the productsuccessful.This optimism, however, is often not
strategy. Product specifications, charts and graphssupported by the facts. Unrealistic financial
regarding product performance and detailedprojects, 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 thereserves to help the business through the
detailed resume in the appendix.Research isstart-up phase. As you develop your financial
important, but don't get bogged down in theprojections, consider two scenarios, a best and
details. As your review your research, select theworst case. Can you handle the volume and
most relevant facts which support your plan ofcapacity demands of a best case scenario? And is
attack. Also include references to your sourcesthe idea still viable in a worst case?Stuff happens!
(so the reader can check your facts).ClearlyThings go wrong. When they do, will you be
Define Your CustomerEveryone is not yourprepared? Having an adequate assessment of
customer. Too often small business owners, afraidrisks 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 theycompetitive challenges and changing marketplace
include everyone. The danger ... Without a focusconditions which might adversely affect your
you end up spreading yourself so thin that youbusiness. Once you identify the challenges, then
don't effectively reach any particularyou must develop action plans, safety measures,
customer.The chiropractor who defines his targetand insurance policies to protect the lender,
as anyone with a spine may think he is indicatinginvestor 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 ofplan. Seek advice from people your respect. Talk
the buying characteristics, beliefs and bias ofto employees, family members, business partners
consumers in his market. There are large groupsand advisors such as your accountant and lawyer.
of people who do not believe chiropracticAsk their opinions and communicate your goals. It
treatment is "real medicine." It is not prudent tois 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 toremember, it doesn't matter how simple or
concentrate his marketing efforts on thosecomplex it is; the process, not the finished
customers most likely to buy.Once you trulyproduct is important. Your plan does not have to
embrace the idea of focus as the key to abe perfect. It can be as elaborate as an MBA
successful business, you are ready to startthesis or as simple as a few double-spaced pages.
developing the rest of your plan. With a clearWhat is important is that the plan exists because
definition of your customer, it is easier to answeryou took the time to answer tough questions
the questions that follow.The operating plan for aabout your business.Actually, a good business plan
chiropractor, hoping to work primarily withis never finished. The best business plans are not
athletes suffering from sports related injuries, willbeautifully bound documents gathering dust on a
be dramatically different from one developed forshelf. They are tattered and smudgy from
his associate who is focusing on individuals dealingfrequent 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 andtwenty year veteran of Corporate America,
promotion will all be driven by the choice of aLorraine Ball helps believes every business can
target audience.Do Your HomeworkDoes anyoneimprove profit through planning. And when it
really want your product? Anyone other thancomes to marketing, it is not how much you
your mom, wife or best friend? Too oftenspend, but how well you spend it that makes the
innovative entrepreneurs become enamored withdifference.Her marketing firm, Roundpeg helps
their technology, product or idea and fail to looksmall business owners find a starting point for
at the larger community. How many individuals orgrowth and change.