Unformatted text preview: cide what you will use the plan for, such as to:
• Deﬁne and ﬁx objectives, and programs to achieve those objectives. • Create regular business reviews and course corrections. • Develop and establish a new business. • Support a loan application. • Deﬁne agreements between partners. • Set a value on a business for sale or for legal purposes. • Evaluate a new product line, promotion, or expansion. No Time to Plan? A Common Misconception
“Not enough time for a plan,” business people say. “I can’t plan. I’m too busy getting things done.”
Too many businesses make business plans only when they have to. Unless a bank or investors want
to look at a business plan, there isn’t likely to be a plan written. The busier you are, the more you need
to plan. If you are always putting out ﬁres, you should build ﬁre breaks or a sprinkler system. You can
lose the whole forest for paying too much attention to the individual trees.
A good planning process should save time, day by day, month to month. It helps keeps businesses
focused on what’s most important. Maintaining priorities is efﬁcient.
Review your plan vs. actual results regularly to save time by avoiding mistakes, maintaining progress
towards goals, identifying problem areas, and watching the business for areas which need attention. Keys to Building Better Plans
• Use a business plan to set concrete goals, responsibilities, and deadlines to guide your business.
• A good business plan assigns tasks to people or departments and sets milestones and deadlines
for tracking implementation.
• A practical business plan includes ten parts implementation for every one part strategy.
• As part of the implementation of a business plan, it should provide a forum for regular review and
• Good business plans are practical. Business Plan “Don’ts”
• Don’t use a business plan simply to show how much you know about your business.
• Nobody reads a long-winded business plan: not bankers, not bosses, not venture capitalists.Years
ago, people were favorably impressed by long plans. Today, nobody is interested in a business plan
more than 50 pages long. 1.4 HURDLE: THE BOOK ON BUSINESS PLA...
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