Starting your planning engine: Part one
The foundations for a business plan
A business plan is for all steps in a business even if it's old still a business plan is needed to make things easier. In order to make our business plan improvement possible, we need to setup a planning engine so we can make changes with out starting from the beginning.
First of all we must commit some of our precious time to write our business plan. Making a daily schedule will help to concentrate without any distraction .
As you carve time out of your calendar, these two steps will keep us motivated
-Define your business situation and how a business plan can help you move your business from where it is to where you want it to be.
-List the ways that a business plan can heighten your company’s odds of success.
Defining your business-planning situation
The first step to define a business plan situation starts by defining our current situation.
- Write a description about your current business situation.
- Describe your future plans
- Define opportunities and details the financial, operational, marketing and organizational strategies
Think about your company as if it were a ship ready to sail to its destination, your business plan define your destinations and route that you will follow. It details the supplies and crew you have on board as well as what you still need to acquire. It forecasts the cost of the voyage. It describes the weather and sea conditions you’re likely to encounter along the way and anticipates the potential dangers that may lurk over the horizon. Finally, your business plan identifies other ships that may be attempting to beat you to your destination.
Buying into the value of business planning
The time spent investing in your business plan will pay off many times over.
Following are some of the most obvious benefits you’ll gain from business planning:
- A clear statement of your business mission and vision
- A set of values that can help you steer your business through times of trouble
- A description of your business model, or how you plan to make money and stay in business
- A blueprint you can use to focus your energy and keep your company on track
- A clear-eyed analysis of your industry, including opportunities and threats.
- A portrait of your potential customers and their buying behaviors
- A rundown of your major competitors and your strategies for facing them
- An honest assessment of your company’s strengths and weaknesses
- A road map and timetable for achieving your goals and objectives
- A description of the products and services you offer
- An explanation of your marketing strategies
- An analysis of your revenues, costs, and projected profits
- An action plan that anticipates potential detours or hurdles you may encounter
- Benchmarks you can use to track your performance and make midcourse corrections
- A “handbook” for new employees describing who you are and what your company is all about
- A “résumé” you can use to introduce your business to suppliers, vendors, lenders, and others.
