The Business & The Plan

Writing a business plan can be a daunting task. Who am I kidding? It is a daunting task! It’s a challenge but it is essential to the start of any business. What I’ve learned and I’m still learning is the business plan is primarily a model or template of what you expect your business to be. Will the business be exactly as you’ve predicted in the actual business plan? No! Don’t misunderstand me though. You do want growth as indicated; however, the methods chosen to get there may not be as you’ve planned. The entities involved in the development of an actual business; you or any partners and the actual business, are organic. So, expect things to change.

When a true entrepreneur is involved in business planning, it is good for him or her to create a business plan to organize and document the desired structure of the business. Carl Schramm does not think the business owner has to follow the completed business plan step-by-step. To him the business plan become obsolete after some time has passed. I must say I somewhat agree with him. Business plans are great for recording your thoughts, ideas and intended plans about the business. Be realistic in planning but do not limit yourself to the information provided in the plan itself.

Relax, be yourself

Schramm’s ideas about the entrepreneur encourage us to be ourselves. Continue to think outside the box. Learn from present and past experiences, jobs, personal and professional relationships in order to establish and build an efficient knowledge base. Where I differ from Schramm is that I believe the business plan should be updated periodically. Your business will change there is no doubt about that. However, your ideas and intentions for the business are likely to change or at least adapt to circumstances. There are circumstances and situations, which will be inevitable.

Following a business plan to the tee and not straying from it at all is in my opinion, following the norm. Entrepreneurs use common sense but they do not follow the status quo. That’s one of the reasons why they are in business in the first place. Again, business plans are important but do not live by your business plan only. You are asking for all kinds of disappointment.

What’s important in the plan?

The most important section of the business plan is the financial statement/forecast. Investors want to know how you intend to make money. These intentions will be instrumental in securing additional funding for the start or expansion of your business. What I found interesting is that Schramm measures the person, not the business plan to determine whether or not to invest in a business. This is something to consider when planning for the financial future of your business.