Time To Hang Out Your Shingle?
Lately I’ve noticed increasing numbers of folks telling me they’re starting their own business. Some have sworn to never get laid off again; others are disgusted with blatant ageism.
The interest seemingly cuts across industries and disciplines, but everyone shares one trait: a desire to control their own future.
You, too, may be thinking about starting your own business. Before you pull the trigger, it’s really important to understand the value of having a comprehensive business plan in hand.
Few people will tell you this: Approximately 70% of companies surviving for five years follow a strategic business and marketing plan.
Now consider that 71% of fast-growing firms have such plans.
Hmm… business plans leading to higher survival and growth rates. Coincidence? I think not!
Inside tip: 99.9% of U.S. businesses have under 100 employees. Meaning managing (and surviving) both lean times and overwhelming success comes down to having built that plan early on, so you’ll know what you’re doing.
There are definite benefits to having (and using) a well-organized business plan:
CLEAR DIRECTION: Clarify the business’s goals and objectives, providing a roadmap, setting a clear strategy and guiding your decision-making.
GREATER FOCUS: Owners and employees have better understanding of priorities and goals, improving daily operations.
BETTER DECISION-MAKING: A business plan incorporates research, financial projections and market analysis, providing data for making informed decisions about every aspect of the company.
ATTRACTING INVESTORS AND LENDERS: A plan is critical to getting funding, showing folks with money that the business has a solid strategy, market understanding and a realistic financial outlook.
RISK MANAGEMENT: Doing a SWOC analysis (strengths, weaknesses, opportunities, challenges) sets you up with strategies to mitigate problems. This reduces unpleasant surprises later.
MONITORING PERFORMANCE: Set measurable goals and performance targets, making it easier to track progress over time. This simplifies adjustments when things go sideways (as they invariably will!).
EXPANSION PLANNING: You’re building a blueprint for how to expand, enter new markets or diversify offerings, ensuring necessary resources are there to support growth.
BETTER COMMUNICATIONS: This strategic tool helps align stakeholders, employees and partners around common visions, strategies and goals.
THIS BELONGS IN EVERY BUSINESS LIBRARY!
Now available in paperback and on Kindle!
Bottom line: Business plans help startups (in particular) stay focused, providing a foundation for long-term success, guiding important decisions and anticipating challenges.
With that said, I wish you a week of profitable marketing.
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