Help for Small Business Owners

Whether you are starting a new company or purchasing an existing one, I believe it is in the best interest of your overall success to always have a business plan.  A business plan will give you a better understanding of your business.  Now, that being said, I must admit that Phillips Business Solutions recently split into two companies, PBS and KizmeTech, and I did not write a business plan for KizmeTech and I did not re-evaluate my current business plan for PBS.  This is a classic case of do as I say, not as I do. 

There are many reasons to write a business plan, but the most important reason is to go into your new venture with your eyes wide open.  If an existing business is currently running “in the red”, what, if anything, can you do to change that?  What overhead will you have?  How many employees will you need?  What kind of marketing will you need?  How costly is the marketing?  How many units do you need to sell to “break even”?  To make a profit?  The list goes on and on, but you get the idea.

Another reason to write a business plan is for funding.  It doesn’t matter if you are going to a bank for traditional funding or applying for a grant, you will absolutely need a business plan.  All lenders want to know if your business ideas are viable on paper.  Big dreams must be in black and white for funding success. 

Frank Fiore, author of “Writing a Business Plan in no Time” lists the following reasons to write a business plan:

1. It defines your new venture.
2. It answers the question: will the business make a profit.
3. It provides an estimate of your start up costs.
4. It devises an effective marketing strategy.
5. It helps you compete in the marketplace.
6. It measures your business performance and tracks your growth.

I hope this answers the basic question of “to business plan or not to business plan”.