| According to the Small Business Association, 2 million | | | | success on paper, you will have a very difficult time |
| people become self-employed each year - and many | | | | making it work in practice. A written business plan can |
| start their businesses with less than $5000 in start-up | | | | give you the confidence to stand behind your business |
| capital. Of those, two-thirds will survive at least two | | | | even when others aren't supportive. |
| years and 44% will survive at least four years. That's | | | | 2. Clearly communicate what your business stands for. |
| the good news. The not-so-good news is that | | | | A business plan helps you share strategy, priorities, and |
| according to the National Federation of Independent | | | | action points with your partners, vendors or significant |
| Business (NFIB), over a business' lifetime, 39% are | | | | other. As you grow, you may need to hire employees, |
| profitable, 30% break even, and 30% lose money. | | | | apply for a business loan, or develop business alliances. |
| If you're in business for yourself, one of your likely | | | | Your business plan can quickly explain to others how |
| goals is to do better than break even. You want to be | | | | your business operates, what you sell, how you |
| in that top third that is actually making money. So | | | | generate revenue, and who is in charge of projects. |
| where do people go wrong? One key reason why | | | | 3. Focus on a few key priorities that are crucial to your |
| businesses fail is the lack of a solid business plan. | | | | company's success. Your business plan helps you |
| A business plan is your model for how you do | | | | determine which projects and activities will move you |
| business. It is a document that anyone can read to | | | | closer to your goals. As new opportunities arise, you |
| understand where your business is, where you hope | | | | can quickly determine if they are good fits for your |
| to be in the future, and what steps you plan to take to | | | | business objectives. |
| get there. | | | | 4. Track your limited resources. Every business has |
| Planning doesn't have to be a chore. You don't need a | | | | limited time, money and personal, and it can be easy to |
| formal 50-page document that describes every facet | | | | underestimate the amount of resources each project |
| of your business in detail. Rather, you need a workable | | | | will consume. Your business plan will help you track |
| plan that you will review regularly to make sure your | | | | costs and manpower so you will know if you can take |
| business is headed in the right direction. | | | | on additional projects. |
| Planning is about controlling your destiny. It is about | | | | 5. Create accountability. When you create metrics for |
| deciding what you want to accomplish and determining | | | | achieving your goals, you set benchmarks for how you |
| the required steps to achieve your goals. If you don't | | | | will measure success. You will know if you are on |
| plan, if you don't set goals for your business, you are | | | | track to meet the numbers or if you must rethink your |
| just reacting to whatever is happening around you. | | | | strategy. When things go poorly, having benchmarks, |
| Here are a few more reasons why every business | | | | metrics and a plan can help you break out of the |
| owner should write a business plan. | | | | status quo and move forward again because you |
| 1. Develop confidence in your ability to run a successful | | | | know what to focus on and prioritize |
| company. You are the main stakeholder in your | | | | When you have a plan, you decide in advance where |
| company and its most enthusiastic supporter. You | | | | you want to be. You create a destination and you set |
| believe it is worth investing a considerable portion of | | | | the course for how you might best reach that |
| your time, money, energy and resources over the next | | | | destination. When things go wrong or you learn your |
| few years. You must understand its strengths and | | | | assumptions were incorrect, you can course-correct |
| weaknesses, cash flow, and realistic chances of | | | | to get back on track. |
| success. If you can't make a case for your business' | | | | |