Americans are starting businesses at a faster pace than ever before, reports the Kauffman Foundation, a think tank for entrepreneurship. According to Kauffman’s latest survey of U.S. entrepreneurial activity, the number of new businesses created since the recession started in 2007 has increased every year, to record levels.
Whether you’re looking to turn an entrepreneurial dream into reality or re-evaluate and expand an existing business, a smart business plan can make all the difference.
Writing a business plan is the first step in turning an idea into a thriving business, starting a new division of an existing company, or simply breathing new life into one that may need a push to get through a tough time. Not only does writing out your idea force you to think more clearly about what you want to do, it gives the people you work with a defined road map as well. An effective plan provides the navigation chart that you’ll use to get where you want to go. Without one, businesses tend to find themselves adrift.
Here are tips from Steven Peterson, Peter Jaret and Barbara Schenck, co-authors of the just-published third edition of “Business Plans Kit For Dummies:”
• Take your time and get it right. It’s tempting to rush through the planning process in your excitement to get a new or reworked business venture underway. Don’t. The time you spend on planning at the outset will save you far more time later on once you are up and running. And as you will find, your time will be even more precious once your plan is in action.
• Don’t skimp on research. A good business plan should be based on more than just your own great ideas. An effective plan depends on a complete and accurate understanding of your market, your customers, your financial situation and your business environment.
• Involve the right people. If you’re a current business owner trying to re-energize your business, the ultimate success of your plan depends on the dedication and motivation of your team. You can’t do it all on your own. Involving your team in the planning process will be a great source of insight for you as you decide what will work and what won’t.
• Temper blue-sky fantasies with clear goals and solid timelines. Most business plans (or replans!) start with an idea: a dream to do something new, exciting or different. During those initial planning stages, you have big ideas, lofty goals, and the possibilities seem endless. It’s easy to get lost in the “someday” of it all and forget that in the beginning, you have to make actual progress toward sustainable results. In other words, make sure your plan includes measurable outcomes and feet-to-the-fire timelines. •
Daniel Kehrer can be reached at
editor@business.com.
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