There are a lot of schools of thought on the issue of business planning. Some believe that if you have a good idea and you know how to execute it, you should just go for it. There are still others who would state that they started their business without a business plan and it turned out just fine. Both may be true but there is still another way to look at this. Imagine… if you want to reach a destination where you have never been before is it best to just begin the journey and navigate in the dark or would it be better and possibly more direct with a map? Your business plan is your map, compass and your telescope; let me explain how this works.


When you start a business the plan is to succeed. You have a great idea and you now want to start your business. For the most part people think that their idea is unique that their business is superior to others. Writing a business plan puts the idea into a road map which gives direction to your business. As you develop the plan you will see if this idea has the potential of becoming a viable business. As the plan unfolds you will have the opportunity to see if the obstacles or roadblocks of which you need to avoid. In the development of a business plan your business begins to take on a life form prior to investing any capital.


You will research who your clientele and where to find them. This will serve as your compass. Believing that the entire world is your potential client is a fallacy. You need a focus in which to target. You will start by choosing and researching where this target population is. If you do not know who your potential clients are you will not know where you will advertise or how you will advertise. Knowing this population is critical to the success of your business. Once this is completed you will then devise an effective marketing plan which will bring to you the clients that you need and want.


Once this information is gathered and you have your map and compass in place you will begin to look at your capital. How much do you have to invest into your business? And you want to know if you will need investors or a loan to catapult your business. This will all begin to surface as you write your business plan. Where do you want to begin, are you going to need employees and how many employees. If it’s a product driven company will you need product to sell. Were you will obtain such products and how much you will need is also a question. Even if it’s a service oriented company you will have to explore the employee scenario.


Deciding all of these details will make it easier to decide how much money will be needed to get this venture off the ground. You will do financial projections which is where the telescope comes to play. Your financial projections will tell how much you are starting with and how much you will make in the future. You will look as closely as current and as far as five to ten years from today. This will tell the longitude of your business. You want to know where you currently are, how much you are willing to invest of your own money and will you need a loan or investors. You have to be clear with the investors or the bank as how much they will need to invest or loan you for the company.


It may appear overwhelming and I won’t deny that this will take time and a lot of effort but, this will assure you and the investors/bank of the success of your business. Statistics have determined that businesses with a solid business plan do not fail in the rate those businesses without can. Your business plan will continually be a work in progress. You will review, add and subtract to your business plan as you embark on your journey. A business plan will also be a requirement from your investors or bank should you choose that route. Your excitement about your great idea will not be enough. In order to have them capture your vision you need to show them and your business plan is your model. They will always need to see in writing your idea, your map your compass and your telescope.


To Your Success,


Nilda Perez