Business Planning Process
Business Planning Process:
Find here an easy and practical business planning process to guide you in the right direction!
Every new and exciting adventure starts with a dream. Your path towards a successful outcome involves direction, decision, and determination.
Following a dream is like following the wind, but following the wind will surely take you somewhere.
That “somewhere” might be where you want to be.
Successful businesses start up with a solid business planning process and effective resource management. Many small businesses fail because they skip these steps. Benjamin Franklin said, by failing to prepare, you are preparing to fail.
Here are some steps to consider in general before writing your actual business plan. This exercise helps put things into perspective and makes for a perfect launching pad. Get into the entrepreneur mindset with the right direction and address each item below, then put it in writing. It is extremely helpful to do this as it prepares you for the next planning stages.
1) Am I, an entrepreneur?
Start by assessing resources you have to offer to the new business. From a personal perspective and interests, analyze your strengths, weaknesses, opportunities, and challenges (Personal SWOC analysis).
Is a business career is right for me?
Do I have what it takes to succeed?
Learn the characteristics of an entrepreneur and become one.
If you can imagine it, you can achieve it; if you can dream it, you can become it, by William Arthur Ward.
2) My Passion = My Business?
Another key aspect that increases the chances to succeed is getting involved into something you enjoy doing every day that comes naturally and easily for you. Keep this in mind when the time to selecting a business comes.
What interests you?
What special skill or ability do you have in this area?
What do you enjoy doing every day?
What are you enthusiastic about?
What makes you happy?
We may affirm that nothing great in the world has been accomplished without passion, by George Wilhelm Friedrich Hegel.
3) Market Potential.
The next step in the business planning process is assessing market conditions in the business area you are interested. Analyze this market’s strengths, weaknesses, opportunities, and threats (Industry SWOT analysis) and find out whether it has business potential. Learn how to find niche business ideas.
If we knew what it was we were doing, it would not be called research, would it? By Albert Einstein.
4) Destination: Business goal setting.
What do I want to accomplish by starting my own business?
Where or how far do I want to take it?
How will I get there?
Set goals and objectives for the short, medium, and long term. Learn how to set business goals.
For me, goals are my road map to the life I want. They have helped me accomplish things I once thought were impossible, by Catherine Pulsifer.
5) Imagine. Your calling. Your Values.
Time to think about the future.
Business Vision Statement:
It’s like having faith. Faith is the substance of things hoped for, the evidence of things not seen, by God. Imagine what your business will look like in the future.
Business Mission Statement:
It’s the reason why your company exists. I think therefore I exist, by Rene Descartes. Figure out what is your calling as a business?
Core Business Values:
It’s your company’s priorities. It’s not hard to make decisions when you know what your values are, by Roy Disney. And finally, decide on the core business values that will drive your company's decisions.
Once you have addressed each one of these steps you’ve completed an easy and practical business planning process that will give you direction. Now, you are Ready to go on to the next phase. Make Decisions with the help of a business plan!
Writing a Business Plan: Your Decision-Making Guide
Writing a Business plan helps make critical decisions for your future business and prepares your path to success!
Developing a business plan will help you make critical important decisions during planning and preparation stages of your future business. It’ll provide insight as to whether you are ready or how to get ready for a successful start.
Henry Ford II said: “The best we can do is size up the chances, calculate the risks involved, estimate our ability to deal with them, and then make our plans with confidence.”
Writing a business plan will ultimately give you a clear direction on the path to a more likely success. It’ll answer some basic critical questions such as:
1. What do I need to get started?
2. Am I ready to start a business on my own?
3. Is there market potential for my business idea?
4. Who is my competition? Can I successfully compete?
5. What is my competitive advantage? Is it good enough?
6. Do I have the financial resources to start?
7. Who are my potential customers? How will I reach them?
8. Am I ready to run and manage my business?
9. How will I manage my time effectively?
10. How will I manage potential risks involved?
11. Am I ready to make my business a sustainable one?
To give you an idea of the information you'll need to start gathering use the next business plan template. This decision making guide sets the foundation for the next phase of the process. Making good business decisions involve other key aspects that provide support to the process.
Here you have the structure of a small business plan template to help you visualize all that you'll need to get started and important decisions to make.