As Yogi Berra once said, “You have got to be very careful if you do not know where you are going because you might not get there.”

A successful business plan focuses your thinking, helps you establish a realistic business strategy, improves your operations, and wins for your company the financing and other support it needs.

Written business plans, broadly speaking, are usually put together for either of two purposes: to prepare for a significant event, such as obtaining finance, or to guide the company’s operations for a particular period, usually a year.

Remember, you will invariably take two steps forward and one step back in writing the plan. It is an uneven path, fraught with unforeseen frustrations and difficulties. Thrashing out those problems is an essential part of the planning process.

Being in business is a journey, not a destination, with NO paved roads or freeways, despite what some people would have you believe. However, no matter how good a manager you think you are, how well you know the business, or how quickly you can transact a sale. It will soon grind to a halt if you fail to understand your staff, misuse capital, or otherwise adequately maintain your business. You will go nowhere.

Sadly, this is the case with most small business owners. They are good plumbers, hairdressers, retailers, lawyers, accountants, printers or whatever their trade or profession may be. Still, they have no clue what’s required to maintain and manage their business. So they rarely make it to their desired outcomes. So you need a suitable business vehicle to complete the journey to your chosen destination.

Who needs a plan? Anyone who starts or runs a business needs a plan. It is as simple as that: no ifs, and’s, or buts.

Don’t think that you or your business is any different. Successful companies all have plans; unsuccessful companies do not.

Why do you need a business plan?  

The main reason is you!  

A good business plan will help you. Writing a business plan is not as difficult or daunting as you might think; even if it were, it is something you must do!                                                            

There are a few things that you can do right now to get started.

1) Think about the background and history of your company.

Write a general description of your business, how long you have been in operation, and some basic financial details.

2) Write a few paragraphs about the nature of your products or services. Use language that a non-expert will understand. What do you sell? How is the product used? What need does it serve?

3) Think about your competitive position in the market. Write out answers to these few fundamental questions: What are the advantages of your product (cheaper, better quality, unique features and more)? Are there any disadvantages? (be honest!) Who is your competition? Describe their products, pros and cons.

4) Next, think about your customers. Write a description of your typical customer.

• • • Who are they?
    • Where are they?
    • Why do they buy?
    • When do they buy?
    • Who decides to buy?

5) Write a clear statement of your business objectives. What are your goals regarding sales, profits, and traffic to your website? Set some targets for three months, six months, one year, and two years. Start by thinking about your one-year goals, then work backwards to formulate the benchmarks you need to reach six months and three months from now.

These are just a few considerations that need to go into an effective business plan, but even these five points will get you started. So please spend some time on your business plan; you owe it to yourself and your business.