Dare I admit that I have managed to run my business so far without a business plan? Yes I dare!
I like to believe I'm in good company; I believe a lot of us who became entrepreneurs after working in the corporate world have similar motivations: "I just want to work for myself;" "I'm tired of having a boss tell me what to do;" "I'm too creative/innovative/don't like structure/don't like routine; the corporate environment is too stifling." Sound familiar? So the last thing I want to do (besides marketing, but that's another post) is sit down, and write a boring, long-ass business plan that locks me in. And besides, I do have a plan; it's just in my head.
Well guess what; I'm not getting the results I would like. I asked myself: "What am I doing wrong? What do I need to do more of, what to do less of, and what needs to be done differently?" And that's about when I realized I needed to think about my business aspirations and put them in writing. I needed, and wanted, to get very clear about where I wanted to go. Once I knew where I wanted to go, the path to get there would be a lot easier to map out. And, I'm getting too old to rely on my memory -- I do have "senior moments" from time to time, so putting it all on paper would help keep me on track. Next thing you know, a business plan sounded like a great idea, but I still dreaded writing the plan.
I found myself a mentoring program offered by my local chapter of the National Association of Women Business Owners (NAWBO). And whaddaya know, their mentoring program starts with walking the mentees through writing a business plan! And it gets better; the textbook chosen for us mentees is titled The One Page Business Plan, by Jim Horan. Yes, you can write a business plan that fits on one page. This plan may not be detailed enough to get you that venture capital investment, but it is quite handy for what most of us need -- a blueprint to help us focus, design action plans, and keep on track.
I can't do the book justice in one post, and I would recommend you buy your own copy anyway. There are different versions of this book depending on the type of business you own. The link above is for coaches and consultants (people who sell a service); the links on the sidebar of this blog include a version for entrepreneurs who sell products. Here's the main nugget of this book: If you can answer 5 questions, you have all the elements you need for your business plan. Here's the five questions:
- What are you building? (vision)
- Why does this business exist? (mission)
- What results will you measure? (objectives)
- How will you build this business? (strategies)
- What is the work to be done? (action plans)
For those of you who make decisions quickly, you'll be done in no time. For those of you like me, who tend to over-analyze, it will take a bit longer. But remember, it's your business plan -- change it when you wish. You are not locking yourself in, just documenting your best thinking at this time. Review, revise, refine -- when it's just one page you can tweak it without causing you a lot of grief.
I would love to get your feedback; please leave a comment. Do you have a business plan? Do you dread the idea of writing one? Do you think a business plan is necessary? If you buy the book, did you find it helpful?
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