Ever wonder how to write a business plan?
Ever wonder why you need one?
If you are reading this, you probably have an idea that you’ve decided is good enough to start or expand a business. Maybe you need money and someone has asked for a written plan. Maybe a potential partner wants to know where you plan to take your idea before committing to joining your team. Maybe your children want to know exactly what you mean when you ask if they’d like to take over the family business someday.
Executive Summary
In our opinion, every business plan should have an executive summary. This should be the “why” behind it all. It should answer the question: “So What?”.
Do this after all of the other sections of the plan are complete.
Mission
Philosophy statement about the solutions your business will offer. This is the purpose of the business and should be closely aligned with the your personal purpose. The mission should never change so don’t paint yourself into an unwanted corner.
Values
What the business believes. This should be readily evident to every customer / client / patient / staff member / stakeholder. Like mission, values should be compelling and enduring.
Vision
A qualitative statement describing the desired snapshot of the business in five years time. Think big…then go beyond that.
Goals and Objectives
Quantitative statement of S.M.A.R.T. goals (Specific, Measurable, Actionable, Realistic, Time-frame) over the next five years. Meeting the goals and objectives should be consistent with realizing the Vision.
Market Definition
Describe the principal problem your business proposes to solve. Quantify the impact of the problem if possible. How would the community be changed if your business dramatically reduced the problem? Clearly define the market: size, geography, demographics, etc. Identify and prioritize key marketing channels.
Description of Products & Services
Include their connection to the problem(s) your business exists to solve. You’ll want to ensure your employees are truly passionate about your products/services. They will take their cue from the owner.
Organization & Management
Highlight individual skills and business structure that strongly suggest an organizational ability to realize the vision.
Marketing & Sales Strategy
Everything is marketing.
What is the business’ message (see mission?) How will the business deliver that message to the ideal clientele? Define pricing philosophy. Remember, people buy results, not effort. In fact, people buy feelings. Hourly pricing can work but only if properly connected to results.
Financial Management & Projections
Long term projections. Business growth statistics such as number of clients, revenue per client, number of employees and profits. Capital allocation. Financial impact of product line introduction / expansion. Billing philosophy.
As you can tell, the business plan should itself be a marketing document. Readers should be inspired to connect with the business and advocate for it. It is not a procedures manual. Rather, it should inform any policies or procedures. It is the Declaration of Independence rather than the Constitution. “Why” and “Who” must precede “What” and “How”.
Take your time with the Executive Summary. Once you complete this document, start putting meat on the bones. How exactly will you pursue achieving those first year numbers?
Final thought: Keep in mind that a business plan is a living document. Never stop looking ahead 5 years. Never stop pursing growth objectives that are consistent with a meaningful attack on the problem your business solves. Don’t let your plan just prop up your desk. Let it get you to the moon.
Enjoy!
