Simple Steps for a Better Business Planadmin
Any successful business needs to have a viable and realistic business plan. In most cases, the business plan is created at the beginning, but sometimes it’s designed later in the process. The two main reasons for having a business plan are to provide funding and develop strategy. Without funding, your venture won’t get off the ground; and without proper strategy, the business will most likely fail in a short period of time. If you want to create a solid and accurate business plan, follow these simple steps.
Long Term Goals with Small Milestones
A business that lasts is one that gains momentum slowly over time. This doesn’t take weeks or months to accomplish, it takes years. If you want your business to succeed, you need to break down your goals into different components, some large, and some small. Start with your long term larger goals, then input small milestones that lead up to each of these. Include estimated duration for each milestone and large goal so you have motivation to get things done in a timely manner. This helps you develop a trajectory for your business, and helps your employees know what is expected of them, and what they need to work towards. It also allows managerial assessment of employees, and the ability to determine if your initial goals were set too high, too low, or just right.
What makes you Unique?
Somewhere on the first page of your business plan you should include information about what makes your specific business unique, and how this will help your business thrive. Why will you succeed when others have failed? This may seem less important than other parts of your plan, but it would be a mistake to overlook this aspect. If your business is not unique, a similar business could easily steal your customers. You need something that gives you an edge over competitors, and have this clearly stated.
Annual Financial Adjustments
Even if you stick closely to your original business plan, it’s wise to take a look at your finances annually to make necessary adjustments. If your business made more than expected, or you hired an extra employee, your original financial projections might be off. This allows you to look at the past to make accurate future projections. It also allows you to learn from past mistakes.
Areas of Potential Growth
Whether your business is experiencing large success, or just barely hanging on, it’s important to continually look for areas where your business can grow and improve. Sometimes these areas seem highly unlikely or outside of the box, but it’s good to keep them on your radar. List these potential growth areas and come up with ways to implement them.