WHY DO I NEED A BUSINESS PLAN?
by
Roy H. Bean
Business Analyst for the Ohio SBDC at YSU
"Why do I need a business plan?" is an often-asked question to a consultant for the Ohio Small Business Development Center. When I ask
clients if they have a business plan, they often respond and say yes, "I have it right up here" as they point to their head. Then I respond and ask questions like, "How are you going to market your business?" They respond, "Well I have
been thinking about doing this or maybe I will do this
" This response tells me that they clearly have not committed to a specific plan of action. They have not focused on a definitive plan that disciplines them to a way that they will operate
their business. This is "spur of the moment" type of managing, and it is a dangerous way to run a business. There is no specific "right way" to write a business plan. The important thing is to have one that is committed in
writing. It is your current "plan of action," and it will make you successful. This does not mean you cannot change or revise it; in fact there is a good chance that you will make changes. The important thing is that you have taken the
time to focus on a specific plan of action that will get you to the next level and beyond. It is like "pyramid managing", or as I label it, it gives you goals and higher goals that will give you a greater chance of success than if you do not
have a written business plan. I am reluctant to give sample business plans to clients because they are usually too sophisticated, and often are put into a format that is intimidating. Often they are samples of business plans that candidates
for their PhD. have submitted, and that is not my typical client. The best plans that I have reviewed are written commitments that tell a story, in words as well as numbers, as to what they are going to do and how they are going to do it. That
is the crux of what should be put into a business plan, only best calculated actions that will make you be successful. I measure success in this case as being profitable. When asked, "Who am I doing a business plan for?" I respond and say,
"It is primarily for you, the owner". But in the event you need funding for your project, then anyone that will be asked to make a decision as to you getting a loan or investment money has to be convinced that this business plan is:
realistic, feasible, viable and can service debt. It has to show reasonable debt service in the financial projections. Otherwise, who is going to give you money to do what you want to do? They have to feel "warm and fuzzy" about
your venture and it must be convincing. At the Ohio Small Business Development Center, we will not write a business plan for you, but we will assist you with advice and material that should permit you to develop your own plan. When you have
completed a "rough draft" of a business plan, we will review it and help you with any necessary revisions. It is your business; hence it must be your plan. Please call us to set up an appointment to discuss plans for starting your business.
If you currently own a business and need assistance in developing your goals, we will be glad to help you as well. Our success is measured on your success in developing a viable plan of dreams.
One University Plaza Youngstown, OH 44555 330.746.3350 Fax: 330.746.3324 |
©2001 The Ohio SBDC at Youngstown State University
The Ohio SBDC at Youngstown State University
One University Plaza Youngstown, OH 44555
Office: 330.746.3350 Fax:330.746.3324
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