|
Home::Leadership
Ask Don't Tell Leadership: Why Do I Need A Business Plan?
Author : Gary B Cohen
Why you need a business plan!!!
Q: In last weekÂ’s column, you gave advice about starting a business, and you kept preaching about writing a business plan. I own a business, I donÂ’t have a plan, and IÂ’m doing just fine. WhatÂ’s the big deal?
A: How do you know your business is doing “fine” if you do not have a business plan? This is like a runner stating that he is “fast” when asked his running pace. Quality and success cannot be measured without having benchmarks and goals. A business plan provides both, allowing you to compare your outcomes to your goals. Without a plan, it is all too easy to keep moving the bar for yourself.
In the words of Alan Lakein, “Failing to plan is planning to fail.” Business owners may neglect planning for a variety of reasons. They may dislike making decisions, or they may worry about how the plan will reflect their success. An owner may feel anxious about documenting (and making “official”) job descriptions, lines of authority, budgets, and marketing plans. An entrepreneur may dread such control measures, feeling that a business plan is just like having a boss! If you build a house without a plan, however, you may find yourself living in what looks like a child’s play fort. Every stage is based on a sudden inspiration, and your new home becomes “curiosity run wild.” A quality architect begins with his or her final product in mind. To build a secure business, you must plan.
According to the Small Business Center at Bradley University, 70 to 80 percent of new businesses fail in their first year, and of those that continue past a year, only half survive to five years. Similarly, statistics from Dun & Bradstreet reflect that only 37 percent of businesses with fewer than 20 employees will survive four years, and only 9 percent will survive ten years. In light of such daunting statistics, it seems foolish to take unnecessary risks – like failing to plan.
You may still be thinking, “I can’t make a plan, because things change too quickly.” Although constant change is inevitable in any business, a good plan can be your key to dealing with change. As a sailor, I view a business plan as similar to a centerboard on a small sailboat. Thanks to its centerboard, the boat can continue moving forward, as the winds shift direction; without its centerboard, the boat would flail around and eventually crash. A good plan keeps you consistently moving forward – sometimes slowly, sometimes quickly, but without crashing!
While writing your business plan, you may feel frustrated. After all, you will be writing your goals, without taking immediate action to reach them. You must understand where you are and where you are going, before going anywhere. Writing a plan can be exhausting, too. I guarantee, however, your listless feelings will disappear, as your business transforms from “doing just fine” to “doing very well.”
I hope my response to your question is sufficient and gives you an understanding of why I believe a business plan is critical. Below are some questions to consider while developing your plan:
• Why do I want to start my own business?
• Have I found the right business for me?
• Who are my customers?
• What do these customers need that the market is not currently providing?
• How will I reach them?
• What will it take to reach them?
• How much will it cost to provide for their unmet needs?
• How much are they willing to pay to meet these need?
• Can I make money at this business?
Article Source: http://www.articledashboard.com
Gary Cohen is co-founder of CO2 Partners. He does Executive Coaching for leaders of organizations and was President and co-founder of one of the fastest growing companies in Minnesota, going from 2 to 2,200 employees, starting with only $4,000. He serves on many for profit and non-profit boards. He can be reached at www.co2partners.com or co2leadership.blogspot.com.
Spam emails More free articles Related articles
|
More related feeds |
Obama: "Now is Not the Time for Fear"
If we don't act, we'll be looking at scaled back operations, shuttered shops, and laid off workers. That's why we need a Small Business Rescue Plan - so that we're extending our hand to the shops and restaurants; the start-ups and small ...How to Delegate: One Key Step Towards Leadership
Whenever possible, have your delegate set the timeline and create the plan. You need only provide guidance and sign off. As General Patton said, “Never tell people how to do things. Tell them what to do and they will surprise you with ... Obama: US not "looking for someone who can divide this country"
And no one works harder than folks here in Pennsylvania – just ask my friend, Joe Biden, he’ll tell you. So while it won’t be easy, there is no reason we can’t make this century another American century. Unfortunately, my opponent still ... Obama To Hit McCain For "Erratic And Uncertain Leadership"
The rescue plan that passed Congress last week isn't the end of what we'll do to strengthen this economy, it's only the beginning. Now we need to pass a rescue plan for the middle-class that will provide every family immediate relief to ... SOCIALIZED WALL STREET?
I don’t think so, but it will be very alarming if this weekend rolls by without a credible announcement of a new financial rescue plan, involving not just the United States but all the major players. Why do we need international ... Character Meme
70. Do you hold grudges? Are grudges cute? 71. Do you tend to take on leadership roles in social situations? People do what I want them to even if I don't ask them to so I guess the answer is yes but I don't really try to. ... Obama continues assault on McCain plan in speech in Ohio
Well, I don’t think we can afford that kind of erratic and uncertain leadership in these uncertain times. We need steady leadership in the White House. We need a President we can trust in times of crisis. ... Second presidential debate (Part 2)
Don't we go across state lines when we purchase other things in America? Of course it's OK to go across state lines because in Arizona they may offer a better plan that suits you best than it does here in Tennessee. And if you do the ... homebasedbusinessopportunities
Get a simple phone at first and then let the business tell you what you need when you upgrade. So do not get a long term contract. Once you get your new telephone number it is time get your Business Cards made. ... Thomas Friedman: Hope for a hot, flat and crowded world
You guys ate the hors d'oeuvres, you ate the entrée, and you invite us for dessert and ask us to split the bill. We're not going to do that." And I understand, I say, "I know why you're pissed. I'd be pissed, too. But I'm here to tell ...
|
|
|
