Business Plans - Your Blueprint for Success
Running a business without a business plan is like rock climbing blindfolded – your chances of making it to the top are slim and the process will surely be a death-defying one!
Contrary to popular practice, a business plan is not just a means to securing financing. Instead it is a step-by-step guide to running your business and creating a product or service that will make it in the marketplace. And like any other map, your plan will have to be adjusted according to your vision for the company, conditions and opportunities in the marketplace and your business’ current condition.
When was the last time you checked your performance against your business plan? The business plan needs to be under continual review to make sure you are successfully implementing each planned stage.
A business plan should consider:
- What is a reasonable expectation of profitability and when?
- How will the business pay you and any team members?
- What are the estimated expenses?
- What is the marketing strategy?
- What is the need for what you are offering and who is your target audience?
While much of this may have occurred to you informally, it is very important to write it down. If you ever need to approach a bank or investors, you will need it. Writing it down will reinforce your vision, give you a reference point for checking your business’ progress and will most likely bring up factors you did not consider when creating the plan in your head.
Writing your business plan down:
1. Helps you determine and coordinate all aspects of business operations
2. Gives you a means to analyse and determine what might be the best change to boost your business out of a stagnant situation
3. Assists you in determining the risks and benefits associated with any changes
4. Decreases your chances of making a mistake or not considering important factors in your business
5. Increases your chances of success
Business plans are not only for those just setting out on their journey in the marketplace. They are useful when acquiring a new business, forecasting growth, introducing a new product or service, entering a new market, responding to changes in the market or changing a significant aspect of your business.
If you would like to learn more about how a structured plan can guide your business down the path of success, contact one of the partners here at CST Nexia Ltd on 09 262 2595 or email team@cstnexia.co.nz.
