On the previous page, we discussed the top ten mistakes when starting a business. We started with mistake #1 which is on having a plan. The second one is similar except you actually have to make a plan for without it, the work you do make your business grow will be fruitless.
Mistake #2 is about making a plan. If you fail to plan, you plan to fail. Having an idea while it is exciting is not a marketing plan. It is just an idea. Planning may not be exciting and it takes a long time. It could even be tedious. And it is getting in the way of your exciting idea.
But believe me, it will benefit you in the long run. Your plan will guide you as to the capital you will need, when the goals and business change. And you may even have to change the plan to fit your business as it grows. Planning as you can see is a never-ending process.
There are so many things to consider before starting to write a plan. You should for instance think of why you need a plan, who needs a business plan and when should you write it. Then you should include in the plan your mission statement, that is the goals of your business and how do you accomplish them.
The above is courtesy of freefoto.com. Some people don’t think there is a need to have a business plan but The Small Business Administration thinks it is essential to have one before diving in to start a home business. For one thing, there are a lot of things in your mind that are dying to get out and if you don’t have them incorporated in your business plan, it can just evaporate into thin air.
Some people though are not of the same mind and they are backed by a study conducted by an entrepreneurship researcher and professor emeritus William Bygrave. This professor at Babson College found out that those who had a business plan did not have any more success than those who did not have.
Now you know the two sides of having a business plan. Seriously though, without a plan how would you consider obtaining financing, planning the trends, planning for the future, and most importantly, marketing the business. Don’t let all these hold you back. Just write a simple plan and keep it short.
Scared to write a business plan? Don’t panic for here are complete business plan templates that include full industry research, 3 year excel financial models and a funding source directory.
By Roger Guzman, M.D. and Evelyn Guzman