The importance of a business plan

[King Justice]

A business plan is a critical element that all new business owners should consider before establishing a business.

A business plan lays out the goals and objectives of both the business and its creator, and allows you to stay on track during the duration of the rocky beginning stages, which will be slow. ;)

Six thoughts to think about when planning a business include: realize that timing is critical; trust your gut; it's never too late; personalize your plan; the audience matters; and spread the wealth.

To each of those thoughts, you can develop your own attitude towards where you want your business to go. This is one of the first steps in creating a business plan.

[Thanoz]

Great post King!
I 100% agree that a bussiness plan, a correct set bussiness plan, is crucial and of vital importance if you are planning to succeed.
I agree with the thoughts you mentioned above, although i can't say that i tottaly agree with the "trust your gut". That doesn't mean you don't have to take a risk but some times.."too much gut" can ruin your plans and bussiness.
Risking is good, but only if you have done the appropriate research before i'd say.

[Footzilla]

One thing that TIME IS MONEY
Every successful business man cares about the time a lot. They wont even waste a min on doing silly things.

Everyone should decide about the future goals before starting a business. This would really help your business to be successful. You cant be successful if you dont care about the future

[upineter]

Business plan like a map. If you go to a village and dont' know the way your destination, you have to read the map. In the business, where you will bring the company and how to get your company target you should make the business plan.

[Nazreen]

In terms of a business plan, it's best to "begin with the end in mind". This is from Steven Covey's book The 7 Habits of Highly Successful People.


Covey illustrates the concept with a visualisation exercise. Imagine that, at the end of you life, you were able to listen in to what was being said at your funeral. What would you like to hear people say about you, as a father, a life partner, a colleague etc? Whatever it is you would like to hear, you are now in a position to start living the kind of life that will make it happen.

[upineter]

In terms of a business plan, it's best to "begin with the end in mind". This is from Steven Covey's book The 7 Habits of Highly Successful People.

I am sorry Nazreen I am not understand with the "begin with the end in the mind". Is this quote refer to the worst things that happen in the business or ?

[Nazreen]

"Begin with the end in the mind" - means that you should already have a desired outcome when you start planning for your business.

Let's take for example the building of a website. You start or begin by visualizing how you want your website will look like, the contents you want to put, the animation, links, navigation panels, etc. Only after you have your desired outcome, can you begin designing your website.

It's also the same as knowing your destination when you go anywhere. The destination is the "end" that I was referring to here.

[upineter]

Thanks Nazreen, I get new vocabulary of in the business world. You explain with relevant with my job and It make I can image that do you mind.

Thanks.

[Hurbel2k]

To further expand of the website example just answer this question:

Do You build a website in a way to reach a desired goal
or
Do You define Your goals according to a website You think is built in a nice way?

If You do it the second way, You might end up with a really cool website, however You might not make any money, because the website costs more than You make of it.

[Nazreen]

I agree, the second way you've mentioned is not practical. That's the reason it has a great probability of not making any money. Just because you think that it's a really cool website, doesn't mean that it will already be a hit. Let's say that your website has a lot of animations. To you, it's really cool but to your customers it might not be cool because of the very slow loading time.

In this case, the desired goal that you wanted must be to reach out to your customer and grab their attention. Design the website with this in mind.

[Fergal]

Do You build a website in a way to reach a desired goal
or
Do You define Your goals according to a website You think is built in a nice way?
I often struggle with this when trying to think of new website ideas. I generally think in terms of the technology that is available (e.g. blog, forum or directory scripts) and then try to think of a novel site idea that could use this technology.

A much more innovative approach would be to formalise the website concept and then source or commission the technology to build the site.

[avi007i]

Have your business plan written down somewhere.
But before choosing your final plan, carefully access and think about the advantages and pitfalls of each of your business plan. Brainstorm with your business partner/ partners about different ideas and then you can finalize your plan.

[Footzilla]

One thing that might be helpful is that write your business plan for the next 2 years and don't even think about to change it in between.

[Fergal]

You might be right Footzilla, but for me 2 years is a very long time. Three months would probably work for me, but I'd find it difficult to commit for longer than that without re-evaluating the situation.

[Nazreen]

Rehearse the future. Walk the battlefield before the battle. The business environment is all about competition so Sun Tzu's "Art of War" has a lot of relevance to the business world. Sun Tzu said that the highest form of winning a battle is to win without fighting. In this case, it's all about winning customers - their hearts and loyalty.

Every business plan should take this into account - the battle is all about winning customers.

[Fergal]

Rehearse the future...

As Stephen Covey would say, everything happens twice, first in your mind when you visualise it, then in reality.

[Nazreen]

As Stephen Covey would say, everything happens twice, first in your mind when you visualise it, then in reality.

I need to get a hold of Stephen Covey's The 7 Habits of Highly Effective People. I've only read excerpts from the book and reviews/praises from motivational speakers and other successful people.

This book is always on loan status in our national library. Either that or it's always on reserved status. I should just buy the book and I truly believe that this should a very valuable investment for myself.

[akhanna18]

the business plan help to atrack investors and can star a sound business and we can get loans easily.

[akhanna18]

the business plan help to atrack investors and can star a sound business and we can get loans easily.

[JPolito830]

The business plan is the selling point of most businesses and will assist you in achieving loans and other funds.

[Emily0415]

Business plan like a map. If you go to a village and dont' know the way your destination, you have to read the map. In the business, where you will bring the company and how to get your company target you should make the business plan.

I'm totally agree. Not only in busniess, everything you do all needs a plan.It just reflects your attitude in working.

[Nazreen]

The truth is, you can't go anywhere unless you know where you are going. To be frank, this is one of the main reasons why so many businesses fail - because they don't know what they're doing or where they're going. As mentioned by upineter, a business plan is like a map. In order for your business to succeed, you will need to have this very important map in your possession. If you don't have it, you might get lost or your business fails!

[akhanna01]

to start a business , its become prudent to have a appropriate business plan to run a sucessful business. plan will able to project the growth and targets.

[Nazreen]

Yes, I quite agree with you on that. Without a business plan, you would be in the dark not knowing where to go.

Oh yeah, before I forget... Welcome to the Business Advice Forum akhanna01! I see that you're into selling pet's merchandise. How's your business doing?

[akhanna01]

business plan is very important for a business to have firm footing . if you work out with the business plan sincerely you can easily attract investors for your business.

[Dean-123]

My current business plan is to set up a website for my own company!

[Fergal]

Dean, have you a written plan?

[wainrob]

Visualize your business through a business plan. It will greatly help especially if you want your business to last that long.

[Razzaq]

Hi everyone,


Great post King :)

i must say it a great place for the newbies for great information and ideas to plan there business...

Keep posting


Cheers

:)

[Nazreen]

Hi Razzaq. Welcome to the Business Advice Forum. It would be nice if you could also tell us something about yourself and your business, if any. :)