Friday, July 18, 2014

The importance of planning in a small business

Not everyone is a planner, but if you are a business owner, you must learn to be one.  You cannot run a small business successfully flying by the seat of your pants.  If a business requires bank funding to start up, they must have a business plan to obtain the funding.  There are service providers (including us) who can help write the plan but it is important to use that plan for more than getting a bank loan.

A good business plan is like a good blueprint for a building.  It lays out the foundation, shows where everything should be and how the building should be constructed.  A business plan lays out what kind of working capital the company will need for the first three years, how the business will be managed and operated and what the marketing strategy will be.

Now matter how much time and research you put into a business plan, things will never go entirely according to plan, so it is good to revise the plan frequently during the first three years.  Give some thought as to why things have differed and whether the plan needs to be adjusted or if the execution needs to be improved.

I come from a family of planners so it comes naturally to me.  Any tips on how to become a good planner if you were not born that way?

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