PLANNING: THE MOST IMPORTANT INGREDIENT

Unless you know how to get where you are going, you will end up somewhere else. Think about that! Suppose you lived in Boston and decided to drive to Dallas, would use a map? Of course you would. But what would if you didn't? It would be a very long trip and if you didn't know your geography, you probably would not make to Texas, never mind Dallas.

Starting or running or business without proper planning is like driving from Boston to Dallas without a map. Planning will show you your destination and the best road to get you there. This information summary will provide you with an overview of planning and discus how and why to prepare a business plan.

Why Planning Is Critical?

· Planning gives you a path to follow. It makes your future what you want it to be.
· It is the most important guide to starting, building and managing a successful business.
· It is the best tool available to help a small business raise money.
· A business plan can be a communications tool for investors, suppliers, employees and others interested in understanding the operations and goals of your business.
· If you don't plan for the success of your business--you will fail. It is that simple!

Planning Can Be Difficult

Although planning is critical to your success, it is often overlooked in favor of intuition or "gut feeling." There are other obstacles that hinder planning, including:

· Lack of know-how--it is sometimes difficult to know how to plan and what to plan for.
· Fear of the unknown--it is hard enough dealing with the problems of today without worrying about what's going to happen in the future.
· Inexactness--the best set plans have a funny way of not working out exactly the way they should.

These obstacles are very real. However, they must be overcome if you are to be successful. While we may find it difficult to face the future, heading into it without any direction is much worse.

The Business Plan

The business plan is a written document that clearly defines the goals of a business and outlines the methods for achieving them. A business plan describes what a business does, how it will be done, who has to do it, where it will be done, why it's being done and when it has to be completed.

Dreams and ambitions are great and important. But what really counts in the business world are results. Therefore, it is important to establish realistic goals with a sound methodology for achieving them. A business plan:

- Is the management and financial "blueprint" for a business start?up and profitable operation.
- Is written by the business owner with outside help as needed.
- Explains how the business will function and depicts its operational characteristics.
- Details how the business will be capitalized and managed.

For information on how to write a business plan, links to view samples of business plans and business plan organization, see the business plan page.

For Additional Information

20 Steps to Evaluate Your Business MS Word or PDF
Exploring Business Opportunities MS Word or PDF
Food For Thought MS Word or PDF
Identifying Opportunities Arising From Your Business MS Word or PDF
Preventing Small Business Failures MS Word or PDF
Strategic Planning MS Word or PDF