Plan to Succeed

Success in business is not a lucky happenstance right out of the blue. It starts with a carefully prepared plan that sets out the direction that the business must take in order to achieve the owner’s desired results. The plan identifies ideal customers and how the business will promote itself to these customers and meet their needs. It also identifies the competition and any competitive advantages that the business enjoys. Since business is a commercial activity based on selling something for the purpose of generating a profit, the plan will also include details of how the goods and services will be priced. The plan will address such financial considerations as projected cash flow and income statements.
As an important direction-setting document, the business plan will become a regular reference resource.

Creating Your Plan
There are as many approaches to business planning as there are experts to discuss the topic. Some people emphasize the importance of thorough analysis based on extensive research. The danger to this approach is that the planning process takes on a life and sense of importance far greater than its purpose, which is to set a direction for the business. At the other extreme are those people who honestly believe that less is better and prepare a business plan that is little more than a point-form to-do list.

Who Are Your Competitors?
We live in a very competitive world. If you think that virtually every organization, whether from the public, private, or not-for-profit sector is after your money, you are probably right. As a result of our governments’ deficit-fighting activities, publicly funded organizations such as charities and educational institutions are conducting aggressive fundraising campaigns to balance their budgets. This competition takes place on two levels. First, there is the overall competition for disposable income of your existing and potential customers.
Obviously, money that is donated to charities and not-for-profit organizations represents money that customers do not have available to spend on your goods and services. Second, in order to raise funds, organizations have become very creative, frequently going beyond simple appeals for donations and offering goods and services for sale. Business organizations of all types and sizes compete aggressively for customers’ dollars. Let’s assume, for example, that you have an upcoming family event that you would like to celebrate. You have a virtually limitless choice of how you can celebrate. Depending on your budget, you can do anything from preparing a fancy meal to taking the entire family on an extended round-the-world cruise.


➤ A well-prepared business plan will help you get to where you want to go.
➤ Your plan should describe your customers and what you do for them, and your competition and your competitive advantage over them.
➤ Your plan will also include financial considerations, such as how much you will charge for what you sell and your projected cash low and income.
➤ For your plan to be useful, you must use it