The very first time I meet an business person, one of the most valuable questions I ask them is, "What would you like to have for your business and for yourself?" And almost every single time the reply I get is, "More revenue, more sales, more profit, and the like."
At this point I tend to ask my potential client if they'll let us look over their business plan. After I ask this I typically get a blank stare and a, "Umm … well, uh … I do not actually have one."
The fact of the matter is that the majority of business owners do have a plan. The issue is that this plan is typically just in their head or written down on a napkin and hidden away inside their desk somewhere. This most certainly doesnt help them or their business whatsoever.
There are typically two different types of business plans that you'll be creating. The first is a strategic plan. Strategic plans are created for internal use, and they help guide the business in a disciplined and orderly fashion. Most Strategic Plans tend to include Objectives, Mission, Vision, Business and Competition Analysis, Action Steps, and a detailed time line that lists which specific people are responsible for completing which specific Action Steps. This document lives and breathes, and its created to engage practically every single person in the business to get them to help execute the plan.
The second type of business plan is useful for external purposes, such as securing debt or equity financing. Typically, this kind of plan for your business is extremely detailed, and includes a Customer / Client Profile, an Executive / Business Summary, your Target Market, a Description of Products and Services, your Sales and Marketing strategy, Financial Analysis and Projections, Competition Analysis, Business Model, and Your Competitive Advantage. This particular kind of plan is not limited to this list, but it does tend to include it, and it typically needs some professional assistance since it is what you'll be sharing with bankers, venture capitalists, angels, investors, and the like . It needs to be properly thought through and well written, and it needs to read and look like a professional plan.
