| Writing a business plan becomes a major stumbling | | | | your strategy is going to be to build your business. This |
| block for many new entrepreneurs. They read all the | | | | outline only needs to be complete enough to manage |
| articles, books, blogs, and other drivel about importance, | | | | your business--no one else (other than your advisors) |
| formats, contents, "do this--don't do that" stuff, and | | | | is likely to every see it. |
| then stress out about writing a formal business plan. | | | | 2.) Work Out the Basics. You will need to clearly |
| If you are someone worried about writing a formal | | | | understand your market, and do whatever market |
| document...consider this: | | | | research is necessary to accomplish that. You will also |
| "I have always found that plans are useless, but | | | | need to develop forecasted revenues, and detailed |
| planning is indispensable." --Dwight D. Eisenhower | | | | expense estimates...both to start your business and to |
| The point I want to make here is that for the great | | | | operate it. And, of course, the most important of |
| majority of the 6+ million new businesses that will | | | | all-you will need to determine how much money you |
| startup this year...a planning "document" is not | | | | will need to start your business. |
| necessary and is a waste of resources. At the same | | | | 3.) Use Your Resources. You should have an advisory |
| time, however, "planning" is absolutely necessary for | | | | board, or group, assembled to assist you through this |
| every single one of them. | | | | planning process. A good advisory board can mean |
| Having said that, I am well aware that if you are | | | | the difference between success and failure of your |
| expecting to start a high-tech company to knock off | | | | business--so use them, especially when planning your |
| Google or Facebook, you will need lots of venture | | | | startup. |
| capital, and VCs require a very formal and expansive | | | | 4.) Never Stop Planning. The less formal you make |
| business plan, as well as a top-notch presentation | | | | your planning, the easier it will be to make frequent |
| (should you get that far). | | | | changes to it, based on your on-going experience with |
| But these "darlings" of the startup world are only a | | | | the business. Updating your planning frequently also |
| small percentage of all the businesses that will be | | | | provides the opportunity for you to review your |
| created this year (and every year). If you are reading | | | | thinking and see how that has changed since you first |
| this article, and hoping to start a business, it is highly | | | | started. |
| unlikely you will need to write a formal business plan. | | | | So, in essence, don't sweat the thought of writing a |
| You will, however, need to do some pretty detailed, | | | | mighty tome about your business idea (unless you are |
| "planning." The purpose of this planning is to develop a | | | | looking for venture capital), but be sure to do a |
| fairly detailed strategy that you will continually modify | | | | thorough job of "planning" your business. Remember, |
| as you move ahead. | | | | you are always planning, and how you record your |
| Here is what you need to include in your strategy | | | | business planning is strictly up to you. Cocktail napkins, |
| planning: | | | | whiteboards, butcher paper, etc., are all fine. |
| 1.) A Strategic Outline. You need to understand what | | | | |