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:

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: 

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. 

Melissa Cote