Taking the time to develop a meaningful business plan is a challenge for many small businesses. However, going without a plan can make it difficult to take full advantage of the opportunities available to your company.
Use these tips to develop an effective plan and make the most of 2008:
A strategic plan with too many goals can dilute your team's efforts and cause you to miss your goals completely. Take the time to prioritize your goals based on what's important to your overall strategic vision - for example, where you want your business to be three or five years down the road. Focusing on the top two or three objectives will give you a clear, attainable plan to get your business where it needs to be.
Remember that the ultimate focus of any business plan is achieving your financial goals. It can be tempting to concentrate on the non-financial sections of your plan such as marketing, production or competitive analysis. Keep in mind that the goal of all sections of the business plan is to support your financial projections. In one way or another, every section of your plan needs a financial bent - How will marketing generate income? How will the competitive environment impact your ability to make money? What will production cost and how will that impact profitability?
It's natural for a business to believe its product or service is better than anything else on the market, but be sure that your plan presents a realistic portrait of how it will perform in the market. Watch out for unrealistically high sales goals (either in terms of dollar volume or market share) or growth rates that are out of line with industry norms. For example, if you are planning for a new product introduction, ask yourself about the barriers to acceptance. Always return to the "why" - Why would customers switch allegiance to you? Why would companies outsource a service to you? These kinds of questions will help you keep your plan on target.
When you're creating your plan, don't ignore the valuable lessons you've learned from past successes and failures. You can improve your ability to build on these learnings by documenting results as you execute programs. Don't allow this knowledge to reside only in the head (or in the files) of a project manager; put it on your network to encourage active sharing by all of your team.
A business plan is a "living" document that requires periodic review and continual improvement. Your plan may be your company's road map, but your business can quickly be thrown off course by market downturns, shifting buying habits - even better-than-anticipated sales. Review your plan regularly to see if you're on track, and adjust your budgets and priorities accordingly.
Qwest's planning worksheet can help you plan your company's technology direction for the coming year.
These sites can help you develop a more effective business plan. They offer sample business plans, business plan templates, and information and advice from experienced strategic planners.
Bplans.comThis site, from business plan software maker Palo Alto Software, contains a library of more than 100 free sample business plans. It also offers practical advice on planning, interactive planning tools, and tips from business planning experts.
Business Plan TemplatesThe small business counseling service SCORE (Service Corps of Retired Executives) has put together a library of business templates that includes business plans for start-ups and established businesses, as well as a number of financial statements that can be used in planning. The templates - in common formats such as Adobe® PDF, Microsoft® Office Word and Excel® - can be downloaded and customized.
Center for Simplified Strategic PlanningDespite its name, the center is actually a consulting firm that focuses on strategic planning services for small and midsize businesses. Its "Tools & Resources" section contains articles, tools and tips related to successful strategic planning.
Free Management LibraryThe strategic planning page of the Free Management Library site contains links to dozens of articles around the Web on all aspects of planning. It can help you better understand the concept of strategic planning and get a handle on some of the successful practices related to conducting sophisticated planning.
Innovation ToolsPlanning - especially when business flexibility and agility are considered - can require fresh ideas and innovative solutions. This site aggregates tools and techniques designed to help people be more creative and generate productive and valuable ideas.
Small Business Plan GuideRobin Lasher, a counselor at a Small Business Development Center in Tarrant County, TX, has assembled this site. It aggregates a wide range of resources and information to complete a business plan.