Why do we need a business plan?

“You want to document your own thinking so you can check and if necessary, refine or improve it.’

A Business Plan is the process you undertake to develop, plan and review your business on an ongoing basis.

Before you can start a Business Plan you must have seriously thought and made notes detailing the following points.

• Why do I really want a home business?
• What are my goals for the business?
• What skills will be needed to start, run and grow my business?
• How much income will my business need to generate to survive?
• How much time, effort and resources am I prepared to invest in my business?

Once you’ve established what you’d like to achieve, and the reasons why those things are important to you, then you’ll have an easier time drawing up your plan.

The planning part is simple:

• identify what your current situation is (where are you now?)
• decide where you’d like to be in the future (what are your goals?)
• identify the best ways of achieving those goals (how to get from ‘A’ to ‘B’)
• lastly and most importantly, make a solid commitment to take action so you can achieve your goals

How can a business plan help your business?

A business plan can increase your profit. If you develop a comprehensive business plan and implement it, you have a much better chance of making money and being profitable than if you don’t have one.
A business plan will save you time, work and stress. Having a plan will help you turn problems into opportunities.

But possibly the main benefit of having a plan is that it forces you to set priorities. One of the biggest excuses people make for not getting things done is “I didn’t have enough time.”  But the truth of the matter is, we all have 24 hours in a day.  It’s not the amount of time we have that’s the issue.  It’s how we use that time- or what activities we prioritize over others that matters.

What’s in a business plan?

There are a number of different sections to a business plan, each with a different focus.

Executive summary: an overview of the whole concept or business    This is the first section of your business plan but the last one that you prepare. It outlines the key points of your business plan in one page.

Business profile: a description of your business    This section provides details of your business—its name, location and purpose.

Product/service and market analysis: your chosen market and your position in the market    This section identifies, describes and analyzes the products and services that you provide, your target market, your market share and how you plan to get it.

Marketing plan: your strategies to attract and keep Business Partners    This section describes your marketing strategies, market segmentation, pricing policies and methods of payment, distribution, advertising and promotions. It explains who your business partners are, what they buy from you, and why they buy from you.

Legal and risk management plan: What if? This section identifies potential impacts on your business (both positive and negative) such as a greater market demand or a depressed economy. And how to make the most out of opportunities.

Operating plan: How the business works. This section summarizes how your services are provided.

Finance plan: Your investment, expected turnover, estimated profit and cash flow projections. This section lists business establishment costs, break-even sales, profit and loss and cash flow projections.

The action plan: What you’ll do and when. This section identifies the activities and tasks needed to achieve your goals, the resources that are needed and the personnel responsible for tasks and time lines.

Appendices: This section includes information to support or expand any of the above, such as business references, customer testimonials, detailed product information, marketing research data, financial projections and statements.

How to develop your business plan

Develop your business plan using a combination of doing it yourself and your mentor. Your mentor will provide the guidance and expertise that you don’t have. When you implement your business plan, both you and your mentor will be familiar with it and you will be able to rely on their guidance and expertise to make it work.

As mentioned above, when developing your business plan:

• identify what your current situation is
• decide where you would like to be in the future
• identify the best ways to achieve your goals

Try to:

• identify the strengths of your business, or what makes you successful
• establish both short-term (1–2 years) and long-term (2–5 years) business goals
• set deadlines for reaching the goals you have set
• review your business plan on a regular basis

It is important to continually review the results of your plan to ensure your business’s ongoing success. Ask yourself if the business has achieved its goals, in what areas your business can improve and what strategies you need to implement to improve its performance.

The next step is for you to download a business plan template, and to put in some numbers. Once you’ve done that, I recommend you print off the plan and read it every day. The more you read it and focus on it, the more likely you will be to manifest the desired results. There’s no point in having a plan and then never using it. This isn’t a one off process- it’s ongoing.

Remember, what you focus on expands, and that’s why your business goals need to always be at the forefront of your mind.

LifePath Business Plan Template (from the Monday Training Call)