Tuesday, May 4th, 2010
Over the past several weeks, we have been discussing the components of a business plan in The Mom Entrepreneur Support Group. So far, we have discussed writing the Industry Analysis, Description of a Business and Competitive Analysis.
Members are undecided as to whether or not they actually need a business plan. They have mentioned reading articles or talking with experts who say a business plan is not necessary.
I strongly disagree. A business plan is imperative to the success of your business.
A “business plan” can take on different forms. When I started my first company, Bisson Barcelona, I wrote out a full business plan, which included sections on the industry, target market, competition, trends, marketing strategies and much more. This was a business plan that I took to the bank to secure funds needed to buy an office and equipment. I knew my business well, but needed an organized way to layout and present the information for investors as well as myself for planning future growth.
When I started my second company, The Mom Entrepreneur, I did not create the same kind of business plan. I was not seeking money from investors, and since I had already written a full business plan, I had a sense of the information I needed for planning the growth of the company.
I decided to use an idea notebook. This is a 6×9 inch notebook with pages that are filled with ideas, thoughts, plans, suggestions, etc. I refer to it often, make changes, delete ideas and add new ones.
No matter what type of business you own or how savvy of an entrepreneur you are, you must have a plan! Growing a business takes you to a destination. Would you get in a car and drive to a place you have never been before without a map or a GPS system or some other device to help you navigate?
Of course not. So why would you do it with your business?
“Even if you aren’t planning to borrow money or seek investors right away, there are good reasons to sit down and write a plan,” says Karen Klein, a business journalist who covers small-business issues for several national publications, including Businessweek. “Writing a business plan not only helps you determine whether your business idea is feasible, it also establishes a map for your company’s future. Without it, your business is likely to drift along without direction or parameters for measuring progress.”
Microsoft’s Small Business Center advises that if you’re starting a home-based business on a shoestring, some of these suggestions probably aren’t necessary, but you still should create a plan that outlines your goals, expected costs, marketing plan and exit strategy. If you haven’t written your plan yet, your business is still in the fantasy stages.
“A business plan is never quite finished because you’re always revising it, reviewing it, and building upon it. In fact, more important to your business’ future than having a written, 30-page, coil-bound plan to distribute is the business planning process that you undertake on a regular basis to hopefully keep your ship headed in the right direction without losing sight of your long-term destination,” explains Elizabeth Wasserman, a writer for Inc. Magazine.
Even a seasoned traveler needs to be reminded how to get to a destination. Perhaps landmarks have changed, or road construction has altered your direction.
If you are struggling in your business and feel like you have lost your sense of direction then take the time to research and write a business plan that outlines your goals and how you will achieve and measure them.
Here are some sites that can help get you started:
- SCORE Business Plan Templates- they have a variety of templates here to choose from depending on your type of business. Easy to understand and use.
- SBA Business Plan Template – this template is designed to help you build a business plan. Review and complete each section of the template. At the end of the program you will be able to generate and save a formatted business plan which can later be further modified or presented as a final product.
- Entrepreneur.com Business Plan – describes the different sections of a business plan and offers free sample business plans.
- Need help? Have questions? Join our discussion on The Mom Entrepreneur Support Group about how to write a business plan.
So mom entrepreneurs, what are your thoughts? Do you have a business plan? Do you recommend creating one for a business? I welcome your comments.
Tags: business planning, goal planning, How to write a business plan, starting a company, strategic plan
Thursday, January 28th, 2010
Whether you’re starting a new business or you’ve decided to go to the next level, you must be prepared—and that means having a business plan.
Imagine jumping in your car and traveling to a distant location without a map. Chances are you wouldn’t attempt it. You wouldn’t know the best route, any costs, or what to do to avoid delays.
On the road to success in business, you often travel to places you’ve never been before. You need to plan the best route to reach your goals and map out potential roadblocks. What marketing strategy and budget will you need? How will you implement the plan and measure the return on investment (ROI)? Will you need to seek financial assistance from venture capitalists or angel investors (affiliate link)? What’s your exit strategy? Once you start this trip, you’ll want to check and review your business plan regularly to ensure you’re heading in the right direction.
The hardest part of putting a business plan together is allocating the time to dedicate to it. It takes discipline and time—more than a week—to write an effective business plan. If you are unable to dedicate the time needed, you should seriously reconsider going into business for yourself. Preparing a business plan is a simple test of the discipline and time required to start a company.
There are many resources available on the Internet that will provide you tips, techniques and templates for writing and preparing a business plan. Steer away from business planning software. These programs may look tempting, but they do not teach you much about writing an effective business plan. You’ll learn how to fill in blanks, but you won’t learn how to write an attention grabbing executive summary, calculate operating expenses, make sales and cash projections or set up a marketing strategy. In addition, these software packages do not account for the wide variety of businesses that are out there or the different stages of development they are going through.
Take a basic template and build the business plan yourself; researching and learning about the business process along the way. The business plan outline on the Small Business Administration’s Web site is thorough and descriptive, yet still allows you to think for yourself. If you have never written, or much less seen, a business plan before, then this process will take you some time. You will need checks and balances along the way to ensure that you are developing the plan correctly.
There are many free resources available to businesses seeking assistance. The following nonprofit organizations have offices in every state; you can visit their Web sites to locate the office nearest you.
• Small Business Administration
• Small Business Development Centers
• Women’s Business Centers
• S.C.O.R.E. (Service Corps of Retired Executives)
In addition, these organizations offer support groups, workshops and libraries of materials that you can use. Counselors are available to speak to you and offer advice on just about any business planning subject. They will also review your plan and offer valuable feedback. Most of all, write your business plan with confidence. You have a dream and you can make it a reality.
(Originally published in the Women’s Business Boston Journal)
Tuesday, October 27th, 2009
Taped to the front of my computer screen are two fortunes…one from several years ago and one from my Chinese meal last week.
Some
mom entrepreneurs write business plans (OK, I have one too), but have you ever let a message found inside a fortune cookie guide your business decisions?
Here are my fortunes:
- Many years ago – “Do not follow where the path may lead. Go where there is no path …and leave a trail.”
- Last week – “Your problem just became your stepping stone. Catch the moment.” (For any of you who subscribe to our newsletter, you probably know what this is about!)
How do the cookies always know?
Monday, September 8th, 2008
In The Mom Entrepreneur Online Support Group, I recently posted a topic on how to secure investment money to start or grow a business. There is a speed venture summit coming to our area hosted by the NH High Tech Council and I am considering presenting my business plan for The Mom Entrepreneur.
I asked members of the group if they had any advice. Julie Lenzer Kirk, president & CEO of Path Forward International offered the following tips:
- Know the forum, respect the forum. If you have 2 minutes, do not go over by even a second. If they give you an outline, follow it.
- Know what type of investor you’re pitching to. Angels are different than VC’s and will be listening for different things
- Be able to tell the investor how they will make their money back, how much they will make, and when.
- Focus on the problem you’re solving and monetize it if you can.
- Have a compelling elevator pitch ready and practiced. Include the market size (in $) where you can. For example, “We are targeting the 10M women entrepreneurs” is not as compelling as “We’re going after the $10B women entrepreneurs are spending on x”.
Susan Marks, CEO of Pinstripes, Inc. suggests checking out the Kaufman Foundation website. This organization is dedicated to all things entrepreneurial, and is a great resource for a wide variety of information, education, tools and connections.
Susan is both an experienced angel investor and a recipient of venture capital. She also recommends the book “Winning Angels: the 7 Fundamentals of Early Stage Investing” because it helped her think about her business plan and company from the investors perspective. “For a young company and entrepreneur, this is invaluable in shaping the message to the investor community.” Thanks to our members for their helpful information.
If you have any additional tips or resources you would like to share, please comment below. Thanks!
Over the past several weeks, we have been discussing the components of a business plan in The Mom Entrepreneur Support Group. So far, we have discussed writing the Industry Analysis, Description of a Business and Competitive Analysis.
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