The Plan
Introduction
As an entrepreneur, success requires minding a plethora of details and realizing a strategy that maximizes efficiency and reach. A business plan is a fantastic way to organize ideas, establish targets and determine the course of action for reaching those goals. A well-crafted business plan should identify and evaluate opportunities, develop a strategy, identify resources, outline performance measurements and establish a timeline for success. Writing a business plan is essential for turning an entrepreneurial idea into a profitable venture.
Opportunity
A critical aspect of any business plan is evaluation of the opportunity, or market, and identifying why the business idea is unique. The objective is to enter a void or gap in an existing market. To properly evaluate opportunities, entrepreneurs must conduct an assessment of the end-user and demand generated by that audience. After conducting research on potential competitors, business owners have a better understanding of the competitive landscape, which helps them draw competitive advantages to set their business apart.
Strategy
Business owners must develop a strategy to capitalize on their competitive advantages. A well-thought plan creates a theoretical path to success, outlining all the needed components, what they cost and how they need to be acquired. In some cases, analyzing the competition helps business owners shape their own strategies. Further research and data can help entrepreneurs determine the target market, price points and product or service offerings, which in turns helps inform future strategies.
Resources
For a plan to be successful, entrepreneurs must acquire, solve for or source the required resources. Financial capital, human capital, physical resources and technological resources are primary considerations. Entrepreneurs must consider the cost and obtainability of each resource and evaluate possible alternatives if resources aren’t available. For example, if there is a limited budget to purchase a necessary piece of technology, entrepreneurs can opt to rent the equipment, instead.
Performance Measurements
Establishing performance measurements helps entrepreneurs recognize if objectives have been achieved. Specific, measurable and attainable goals, as well as timelines for completion, help business owners evaluate their progress and determine how to optimize operations for greater efficiency.Businesses set performance measurements to develop an action plan and provide a baseline for accountability.
Timeline
Outlining a detailed timeline ensures all the tasks needed to achieve success are met and all the resources are procured. This is especially important for startups and small businesses, as timelines set expectations, create deadlines and drive progress towards success. Additionally, timelines help business owners anticipate any changes, or pivots, needed in the plan.
Conclusion
Writing a complete business plan is essential for many reasons. It serves as the foundation for strategy and operations, as well as a direction for business owners’ decisions. A business plan promotes order and efficiency in a competitive environment and serves to remind and reinforce the business owner’s objectives while evaluating what needs to be done to achieve success. Without a plan, entrepreneurs are vulnerable to miss potential opportunities, waste resources, and forget objectives. A business plan should be an indispensable tool for any entrepreneur.
