Business Planning 201
Have you ever asked yourself, "Do I really need a business plan?"
The answer is a resounding, "YES!"
Our own WEofC member Stacy Oldfield lets us know why! And, perhaps more importantly, she also assures us that a business plan does not have to be hard to create!
Special thanks to:
- Keynote Speaker, Stacy Oldfield of Minerva Management Partners
- Speaker Summary Author, Jennifer Robinson of Peaceful Living Wellness
Speaker Summary:
Before we delve into the reasons why we all need business plans, it is important that we bust a myth that many entrepreneurs buy into as their reason not to write their business plan: I only need a business plan if I am going to be looking for investment money or a bank loan.
Stacy clearly outlines why this is simply untrue!
The Reasons:
People with business plans are nearly twice as likely to grow their business or obtain capital as those who did not write a plan!
~ From a Palo Alto Software study
- A business plan can dissuade you from throwing money at a passion project that will not make money.
- A business plan helps you think things through and problem solve.
- A business plan is a foundation upon which everything else builds:
- Your operation plan.
- Your strategic plan.
- Your marketing plan.
- Your sales plan.
- A business plan allows you to reassess your goals and plans as your business grows!
- A business plan allows you to reassess your assumptions. Remember, as your business grows your assumptions change and become more accurate.
- Including who your target market!
- A business plan keeps you on track and helps you avoid "Shiny Object Syndrome."
Business plans are not just for new businesses. They are very important for current and growing businesses!
- Stacy Oldfield
Types of Plans:
FORMAL PLANS: These are necessary if you are seeking funding.
- It is important that your financial assumptions are as accurate as possible.
- Know from whom you are seeking funding and tailor your plan to what they want.
- If completing this type of plan seems intimidating just take it one section at a time.
- It is advisable to have someone who knows about business plans review your plan before you submit it.
INFORMAL PLANS: These are necessary to help you focus your thought process
The Process:
HIGH-LEVEL CONCEPT/ THE ELEVATOR PITCH: This is how you want people to describe your business.
- This should be clear and understood by a broad range of people.
FOUR QUADRANTS: These are the main points you will want to cover.
- Product or Service: What is your customer's pain point and how are you going to solve their problem?
- Audience: Narrow this down by demographics as well as personality characteristics. Avoids saying, "everyone."
- Give them a name.
- Picture who they are.
- Estimate the size of your audience.
- Market/ Marketing:
- Who are your competitors?
- Who are your potential early adopters?
- What channels will you use your potential audience?
- What is our initial marketing plan?
- The Business:
- How will you make money?
- What are your operational needs?
- What are your start-up costs?
- What is your timeline?
- What are your key metrics for success?
- What are your anticipated obstacles?
- What are your financial assumptions and projections?
Helpful Resources:
- www.Score.org
- www.sba.gov
- www.bplans.com
APPS: Business Plan for Startups
Final Thoughts:
Do not allow the document t or formality keep you from getting out there and doing things!
- John Osborne, The Harbor Entrepreneurial Center
Just take actions and see the reaction you get. If you do this with intention everything will fall into place.
- Stacy Oldfield
To learn more, or get personalized help from Stacy, visit www.minerva.partners.