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.