| Certain business owners believe that you only need a | | | | products or services it offers, its' value proposition, |
| business plan if you are trying to obtain financing | | | | what market it is in, which customers and prospects |
| either through a bank, venture funding or an offer | | | | your company targets, etc. In the overall company |
| for stock. Others believe that you only need a | | | | sense, it defines who you are and in the |
| business plan when you are starting up a business. | | | | departmental sense it defines the role that the |
| Still others feel it is not worth doing a business plan | | | | department plays in the overall corporate structure. |
| because they are already in business. Studies have | | | | What are the goals of the business? This answers |
| shown that businesses that prepare a plan and | | | | the questions where you want to go or where you |
| monitor their plan adapting to changes in their | | | | want to be in the future. The analysis for all three |
| business have higher success rates compared to | | | | types of plans takes into account where you are |
| those that don't use planning. Your plan doesn't need | | | | currently, how you got there, and where you want |
| to be a long involved document covering every | | | | to go from here. It may also consider an analysis of |
| aspect of the business but merely a plan that | | | | your strengths, weaknesses, opportunities and |
| answers 3 simple questions. | | | | threats or a SWOT analysis. Examining this question |
| There are various terms that describe the overall | | | | will assist in setting goals and objectives for the |
| planning process for a business but in general they | | | | future such as increasing sales by x% or streamlining |
| are all quite similar and answer some of the same | | | | operations to achieve $y in cost savings each year. |
| fundamental questions about your business. Let's | | | | How will you get there? This describes the tactics |
| take a look at some of the definitions of the types | | | | that your business or department will use to achieve |
| of plans and planning processes and the common | | | | your goals. Some examples of tactics are as follows: |
| themes and questions they answer. | | | | Should you use public relations, social networking or |
| A Business Plan can be defined as a description of | | | | simple advertising to get your name and products out |
| what the entity does, the business' goals, the | | | | in front of the competition and increase sales? Should |
| reasons why they are attainable and the plan for | | | | you automate certain aspects of your business, in |
| reaching those goals. A Strategic Plan helps define | | | | order to save costs? Should you expand the |
| who you are as a business, where you are, where | | | | business? Should you invest in more equipment or |
| you want to go and how you will get there. An | | | | people? |
| Operational Plan is usually a subset of the strategic | | | | It is not difficult to create a business, strategic or |
| plan and defines at the department level where are | | | | operational plan, remember all they really do is |
| you now, where you want to be in the future, how | | | | answer 3 simple questions; what the business does, |
| you will get there and how you measure progress. | | | | what are the goals of the business and how the |
| As you can already see there are three common | | | | business will reach those goals. It's all about having a |
| questions that are answered in all of the above | | | | plan of action to propel your business into the future. |
| definitions. Let take a look at them. | | | | Now you, the business owner, need to decide |
| What the business does? This portion of the plan | | | | whether you want to plan for your business or |
| explains the type of business your company is in, the | | | | attempt to operate on the fly. |