Why is a Business Plan important?

ALRCoach — Fri, 09 May 2008 10:59:09 GMT

I have noticed that many small business owners don't really have a business plan that they follow or use to monitor their success. In fact, a majority of the ones that do have business plans only had them completed to get financing or to use when they first started their business, and lastly, if they are a franchise owner, a business plan that the franchisor had written for them.

A business plan should have at least:

Vision Statement -

What you are building and what is the focus of your company? Remember, you get what you focus on! Everyone in the company, whether it is a one person company or a one hundred thousand employee company, everyone needs to fucus on a common vision.

Your Vision Statement should be a short, concise statement of your organization's future state. This could be 1 year, 5 years, 20 years, or even 100 years in the future.

Microsofts vision was: "A computer on every desk and in every home using great software as an empowering tool."
When Microsoft first made this Vision Statement, it appeared to many a very lofty goal, people thought they were crazy! It doesn't seem so crazy now, does it?

A good Vision Statement should incorporate many elements. Here are a few that I believe are important and have been in many books. (There are hundreds, if not thousands of books on the subject)

Audacious: Shoot for the Top! It may be a dream that many and maybe even you, believe is impossible. Over the years I have read many books and have heard many speakers who talked about those people that accomplished amazing feats because they had a dream or a VISION, of what they wanted or though could be achieved. Remember the Microsoft statement?
President John F. Kennedy had this Vision and made this statement, "We will put a man on the moon before the end of the decade and bring him back!"
Wow, what a Vision! And, we did it!

Capitalizes on core competencies: If you are starting a new company, do you know what these are? If you are an established company, think of your company history, customer base, strenghts, and unique capabilities, resources, and assets.

to be continued...

ALR Business Coach

Why is a Business Plan important?