Every successful journey starts with a map, and your business journey is no different. While many entrepreneurs feel overwhelmed by the idea of creating a business plan, seeing it as just another box to check or a document that will gather dust, a well-crafted business plan can be the difference between steering your business toward success and wandering aimlessly. Let's explore five practical strategies to create a business plan that will actually serve your business.
Strategy No. 1: Start With Your "Why"
Before diving into financial projections and market analysis, begin with your purpose. What problem are you solving? Why does your business need to exist? This isn't just about crafting a mission statement - it's about understanding your business's reason for being and communicating it clearly.
Your "why" shapes everything that follows. It influences your target market, your marketing strategy, your pricing, and even your company culture. Think beyond making money - while profitability is crucial, businesses that survive and thrive long-term usually have a deeper purpose. Perhaps you're making healthcare more accessible through technology, or maybe you're helping small businesses compete with larger corporations. Whatever your purpose, make it clear and compelling.
Strategy No. 2: Know Your Numbers Inside and Out
Many entrepreneurs rush through the financial section of their business plan, seeing it as a necessary evil. However, understanding your numbers isn't just about satisfying potential investors - it's about ensuring your business model actually works.
Start with your startup costs, including everything from office space and equipment to licenses and initial inventory. Then map out your operational costs: salaries, utilities, supplies, marketing expenses, and other regular expenditures. Be brutally honest here - optimistic projections might feel good, but realistic ones will serve you better.
Next, project your revenue streams. How will you make money? What are your pricing strategies? What's your break-even point? Don't just pick numbers out of thin air - base them on market research, competitor analysis, and realistic customer acquisition costs. Remember, your financial projections tell a story about how your business will grow and succeed.
Strategy No. 3: Get Specific About Your Market
"Everyone" is not your market. Even if your product or service could be used by anyone, trying to market to everyone is a recipe for marketing to no one effectively. Your business plan should demonstrate a deep understanding of your specific target market.
Who are your ideal customers? What are their pain points? How does your solution address their needs better than existing alternatives? Use demographic data, but don't stop there. Understand their behaviors, preferences, and decision-making processes. This understanding should inform everything from your marketing strategy to your product development.
Include market size calculations, but be realistic. Focus on your serviceable obtainable market (SOM) rather than the total addressable market (TAM). It's better to show how you can capture a significant share of a smaller market than to claim an unrealistic slice of a massive one.
Strategy No. 4: Detail Your Implementation Strategy
A goal without a plan is just a wish. Your business plan needs to outline specific, actionable steps for bringing your vision to life. Break down your larger goals into smaller, manageable objectives with clear timelines and responsibilities.
What systems will you need to put in place? How will you handle customer service? What about quality control? Think through the operational details that will make your business run smoothly. Include your staffing plan, technology needs, and any required partnerships or strategic alliances.
Also, consider potential obstacles and how you'll overcome them. What happens if a key supplier falls through? How will you handle seasonal fluctuations? What's your Plan B if certain assumptions prove incorrect? Showing that you've thought through these scenarios demonstrates business maturity and preparedness.
Strategy No. 5: Make It a Living Document
Your business plan shouldn't be a static document that sits in a drawer. Create it with the intention of revisiting and revising it regularly. Set specific times to review and update your plan - quarterly is often a good cadence for most businesses.
Use your plan as a benchmark to measure progress and make course corrections. Are you hitting your milestones? Do your financial projections need adjustment based on real-world data? Have market conditions changed significantly? Regular review and revision keep your plan relevant and useful as a strategic tool.
Taking Action Now
Creating a business plan is just the first step. Implementing it effectively requires ongoing attention to legal, insurance, financial, and tax (LIFT) considerations. These foundational systems need to be robust enough to support your business as it grows while remaining flexible enough to adapt to changing circumstances.
As your LIFTed Business AdvisorsⓇ attorney, I can help ensure your business plan aligns with sound legal and financial practices while setting you up for sustainable growth. When you meet with me for a LIFT Business Breakthrough™ Session, we'll review your business foundations and create an action plan to implement the systems and structures your business needs to thrive.
Book a call here to learn more and get started today.
This article is a service of a Personal Family Lawyer® Firm. I offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. I also offer a LIFT Business Breakthrough Session, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.
