Some think that only start up businesses or businesses seeking funding need a business plan.  That is not true.  Start up businesses, existing business, expanding businesses, and even businesses planning to exit through sale or closure should have a strategy in place. A business plan forces the business owner to perform a variety of diagnostics on their business idea or actual business.  By conducting all the diagnostics, the right course of action can be mapped out to help achieve the goals set forth for the business.

When you go to the doctor with chest pain, do you prefer the doctor to roll you up to surgery and crack your chest open, or do you prefer that the doctor conduct a variety of diagnostics? Maybe she will listen to your heart with a stethoscope or perform an EKG so that she can come up with the right plan of attack to address your symptom.  After all, you may just have a bit of indigestion. So it is probably best that the doctor sets out an action plan before calling in the anesthetist.

Most business owners desire to grow their business.  A well thought out business plan will guide a business through each stage of a business.  It will help you structure, run, and grow your business, as well as detail all the elements required to run your business.

Do you know where your business should be in 6 months, a year, 3 or 5 years?Small business owners typically get bogged down in the day to day operations of a business, thereby neglecting the strategizing and planning required to grow the business.  Fortunately, a business plan is a written tool that helps map out the business for 3 to 5 years ahead and outlines the path your business intends to take to make money and grow revenue.  A business owner should set a few days each year to work on their business plan.

Most of us, at one point or another, set a goal. Take weight loss, for instance.  One can decide to lose 20 pounds, but the decision in and of itself will not make the weight loss disappear (if only it were so!).  You must make decisions and plans (lifestyle choices) that will help you burn those pounds.  A business plan does the same.  It helps you step back and think about the key elements of your business and informs your decision making as move forward.  Because as we all know…a goal without a plan is just a wish.

If you are seeking funding or looking to add more business partners, having a plan in place is imperative.  Having one will help investors feel confident that they will receive a return on investment.  Consequently, your business plan is the main tool to persuade others to work or invest in your business.  There is not a bank that will give out a business loan without a business plan.

The size of the plan does not matter, but the content of the plan is paramount.  The business plan should include success, market, cash flow, and operations planning.  The simpler the concept of the business the more simple the plan can be.  However, a concept that is new concept, will probably require more explanation and research.

Who needs a business plan? 

If you are not planning on starting or owning a business, you do not need a business plan.  If you have a hobby business or a small sideline hustle, a business plan is not required.  However, if your venture will or is consuming significant money, energy, or time and is expected to return a profit, you need to draft a business plan.  From microbusinesses to large enterprises, to all industries and start ups, existing business, and businesses planning to exit need a business plan.  (Buyers of businesses often ask for a copy of the business’s business plan.)

Remember that once the business plan is complete, the next step is to implement the plan.  The plan is the roadmap to create your dream, but the implementation of the plan turns your dream into reality.  Remember that the business plan is not just a document that occupies space on your cloud or on your bookshelf.  It is a living and breathing document that should be cited frequently and adjusted on occasion, much like a GPS may change your course when there has been a car accident causing a traffic jam.

If you have questions on how to craft a business plan, MPWRSource offers a Business Planning Bootcamp which utilizes the CORE FOUR Business Planning Course to teach aspiring or existing business owners the information and skills in business planning. Reach out to the MPWRSource Squad for more info today!