For most of us in corporate life we were handed our objectives and our planning was about how to achieve our given element. We did not have to be concerned about how the elements fitted together. When we start and run our business we own the plan - “the buck stops here” – let’s not forget that the buck in question hopefully finishes up in our pocket rather than somebody else’s!

So now you need to think about your plan. Your experience to date is probably of corporate plans, which come down on people like a ton of bricks or make good doorstops. They do not have to be like that. A business plan can be a very lightweight document and there are plenty of sources of templates around, but all they give you is an idea of structure and some guidance on content. To create your plan you still need to do the thinking which is relevant to your ideas and needs. The most important thing is to understand is why you are writing the plan and who you are writing it for.

The most important audience for your business plan is you!!! There is plenty of evidence around to support the assertion that those who commit their plans to paper ultimately have greater success. It is also a useful checkpoint and reminder of why you chose to make this step. Remember a plan should be a living document and not a concrete straight-jacket or shelfware. If the assumptions we make are wrong, or conditions change dramatically, our plans were built on false foundations and need to be changed to reflect what we have just learned.

Dave has a verse in mind whenever he plans (courtesy of Rudyard Kipling)

I have six honest serving men
Who taught me all they knew,
Their names are What? and Why? and When?
And Where? and How? and Who?

If your plan answers these questions you are well on your way, and if you can answer all those on one sheet of paper it’s a great plan. You will need to have some back-up detail but simplicity and clarity will help you to stay in focus.

If you need, or want, to raise finance from a bank, or investors, you have a different audience and the financial elements of your plan need to be sufficiently detailed to satisfy that audience.

If you are going to employ others then you also need to consider the value of your business plan for them. They also are stakeholders in your business, you financial plan needs to give them, and yourself, confidence that you are going to be able to pay them. The “directional” elements of the plan need to given them a clear framework for their activities.

Even if you are the only audience you should produce a financial plan, particularly cash flow, in order to ensure that you can maintain what you need for your living needs. You will also need a Profit and Loss plan so you can forecast any tax liabilities.

For the audience of one the financial statements are relatively easy to produce, if you are looking to raise finance you would be well advised to get some external help.

Can you express clearly why you are taking this step. The answer to this question is really about your personal requirements and motivations – what you really want to get out of it – not necessarily just in cash terms.

Who are your customers going to be and what will you be offering them? It is important also to be clear what you will not do or customers you are not interested in. See Marketing.

Where are you going to find your customers from and where geographically will you operate.

How are you qualified to deliver the products or services you’ve identified.

When are you going to start? Once again this is about personal motivation as much as anything else. Make it a “right of passage”, a landmark, celebrate it in some way maybe have a glass of champagne instead of a glass of wine with your dinner that day – it does not need to be extravagant but it needs to be “different” from a normal day.

Maybe for now you just need to plan for your plan. Maybe you’ve got some basic ideas and notes and need to put them into a coherent story. You might want someone to listen to the blocks that stop you putting you ideas down or if you just need some general help with writing the business plan or would like mentoring whilst you construct yours contact us. We all faced the same challenge.
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