Last week we looked at the values that are important in life to run a successful business. There were a few different values that we looked at that are desirable for somebody wanting to run their own company.
One of the values we spoke about was Excellence and we discussed how this is not a destination but a journey, something we should strive for. Excellence can’t be achieved without a plan of where you want the business to be in 1 year, 5 years or 10 years.
This week we are asking the 6th question; Do I need a business plan?
Planning is an extremely important part of starting any business and a good business plan that outlines your wants and expectations can be the difference between success and failure.
Proper, prior planning prevents poor performance!
There is another great saying that I would like you to remember- “To fail to plan, is to plan to fail”. When starting your own business this couldn’t be more appropriate.
However, there is such a thing as overplanning, many people can hide behind a business plan. So remember, you can build your castle in the sky and plan, plan, plan, but eventually you need to get your feet on the ground and set off.
Some of the questions your business plan needs to answer are:
- Why do I want to start a business?
- What product or service will I sell?
- What experience do I have in this area of business that I want to go to?
- What training do I require?
- Will I need employees? And finally…
- What are my numbers?
Budget, units, sales, Gross and Net Profit are just some of the numbers that you need to know off by heart.
Remember, your business plan is primarily for you, but at some point you may need to show it to investors or creditors. Bear this in mind when putting your plan together and remember they will want to see figures and numbers above anything else.