What is a Business Plan?

What is it and why do we (Business Owners) need one?

• An effective way of defining goals and the steps required to reach them. It’s a roadmap to where your business is heading!
• It spells out Purpose, Vision and means of Operation
• It is a Communication Tool for Investors, Employees, Partners and Vendors
• You don’t need one………but it will make it very much easier to build a business with one!

What is the difference between a Strategic Plan and a Business Plan, or are they the same?

• A Strategic Plan is essential for large Corporates with multiple business units, who typically start their annual planning process from the Strategic plan.
• The word “Strategy” is loosely borrowed from the military, aligned to “tactics”!!
• Generally speaking, a Strategic Plan is “futuristic” in nature, whereas a Business Plan is more “tactical” –  ie more relevant to day-to-day processes.
• Smaller companies and Startups tend not to develop a Strategic Plan, but use a Business Plan instead………….though the content is much the same!!

Who is it for and how long does it last?

• It is primarily for YOU! To manage Milestones, Metrics, Performance and assign responsibilities.
• For Borrowing purposes, but also to inform Investors, Employees, Partners etc
• It can last as long as you want!!!! One year / three years / five years / Ten + or even up to 25 years!  The key is Quarterly Targets, regular Review and Accountability.

How complex or detailed does it need to be?

• Less is more!! What / Why / who and test workability prior to formalising a Plan.
• It’s probably best to prepare one 6 months after kicking off your business, as you will have ironed out problems and have a better idea of how it will all work.
• You don’t need reams of prose! Just start with simple bullet points and build from there.
• What is essential, is the inclusion of all the relevant sections (subject of another blog).

OK, how or where do I start?

• For existing businesses, look at what worked and what didn’t………and plan accordingly. You don’t want to re-invent the wheel!
• Otherwise, connect the work you are doing today with your longer-term plan – vital in keeping focussed & inspired, so that achievement during the next review period will get you nearer the long-term goal.
• Decide what to focus on and prioritise accordingly, so that projects can be completed on time.