Haven’t Bothered with a Business Plan Yet? Get Started.
So you’ve contemplated starting a new business, discovered an opportunity to purchase a business, perhaps own or maybe manage a business in the B2B or B2C space. What’s your first task? Before you measure for new drapes or office furniture, focus on the essentials: WHO are your target customers? WHAT is your business model? WHEN will you enter the market? WHERE is the region you serve? WHY will customers be interested? Have you already thought about these? Great, that’s half the battle. Are you already in business without devoting time to this fundamental task? Uh, oh…better read on.
Business plans can be intimidating, especially when weighed by the pound, or based on some sort of square peg template you’ve been trying to force fit, hoping you get the buzzwords just right.
Here’s my advice: Keep it simple, but get started. Consider the following:
Purpose - What’s the point of your business? Do you make products, offer services, or maybe both? Write it down, explain how it works. Develop a value proposition to capture how your company is uniquely different, and fills a void for your customers.
People - Whom do you employ? What are their credentials? Explain the relevance of your team. Start with yourself.
Market - What market segment do you serve? Do you know its addressable size? Describe it, as specifically as you can, ending up with a very narrow definition.
SWOT - Oh, come on, that’s such a stale idea. No…it’s critical and a good vetting exercise. What are your company’s Strengths or talents? What are you good at? What about Weaknesses, or simply, what is out of scope or not covered in your offerings? What Opportunities can be captured by your company? Finally, what are the Threats, vulnerabilities and risks of inaction that customers may face without your company’s expertise?
Competitive landscape - Are you in a crowded segment? All alone? How well do you know your competitors? How is the market better with your company in the mix?
Promotion - How do you plan to acquire customers? Website? Social media? Trade shows? Cold calling? Do you know how to do this? Just gather your thoughts for now; outside support can always be brought in to develop cost-effective programs.
Placement - Will you sell direct? Build a sales channel? An e-commerce platform? How will customers interface with your company? Not sure? Start with direct sales.
Finances - Map out a summary of startup costs, costs to maintain business, product costs and pricing, revenue expectations, etc. Describe as much as you can. Are you a service business? What’s your fee structure? Did you benchmark with peers? Explain your logic and methods.
Objectives - What are you going to accomplish first? What are your milestones for the next quarter, the year? Write down tangible goals, not aspirations.
Loop Closure - How will you measure success? Do your arguments stack up? Will you launch? Will you acquire? Will you exit? Establish a go/no-go threshold and make sure you revisit it regularly before straying too far off course.
Compose this however you like - pen and paper, sticky notes, Word document, slide deck, phone dictation, whatever works for you. Now do it again. Rinse and repeat. Take a breather if you need to, but continue to develop and refine your plan until it accurately captures your business. Share it with your inner circle, your management team, a trusted advisor. Don’t poke and prod at it, like wet concrete, or a freshly painted wall. Leave it until it sets and then declare it finished. Quality, not quantity, makes for a great business plan. Feeling a sense of accomplishment? Congratulations, but remember that these are living documents and should be updated regularly to reflect the changing nature of your company, the market you serve, and the customers you engage.
Looking for a more formal guide, or an AI tool to spit out your completed document, like a bag of chips from a vending machine? Sorry, wrong place. You’ve got to make the time, put the work in, and create your own plan. This is your company, your business, make it a reflection of you. It has to be in written form, not just in your head. And don’t say you’re too busy. Sure, sometimes you may not need a GPS to find a destination; maybe you can manage by intuition or smell. But that’s no way to run a business.
Need help? Reach out for a free initial consultation today.