Business plans have long been touted as the method for success if you are starting a new venture, but is the traditional business plan dead? Many entrepreneurs are intimidated by the idea of creating a document that can end up being in excess of 30 pages, let alone determining which sections they need and what goes in them. It’s also easy to assume that if you’re a small business (whatever your definition of small is), you don’t need a business plan, especially if you’re not seeking financing.
Short answer: Yes.
A business plan should be a guiding document for your business as a whole. It is not a static document that you create once, leave and never look at again. Your business plan should be what guides your vision and drives actions for all the decisions your business will make. Ideally, you should be revisiting your business plan at least annually, maybe even quarterly, to make sure you are on the right track.
Short answer: Maybe not.
Not all businesses are the same, so it make sense that not all business plans need to be the same. Following are key elements you should have in any business plan, traditional or not:
• Marketing Plan – Include information about the demographics of where you will be doing business and who your customers are, as well as how you will reach them (flyers, social media, website, events, etc.).
• Operations – Give a snapshot of what the day-to-day practices of your business will look like, who will be your suppliers and who your key partners are.
• Financials – This is arguably the most important part of your business plan. Where is the money coming from, where is it going, and how long will it take for your business to be profitable? Be honest about this section, overinflating numbers won’t do you any favors in the long run.
• Goals – Use the SMART framework for setting your business goals for the next year, three years and five years out. This will help guide your decisions in the meantime and give you something to celebrate when you hit milestones.