Tips for writting up a business plan: Part 1

Creating a business plan is of vital importantance whether you're a muti-billion dollar, multi-national corporation or a hotdog vendor on the street. By having a business plan, you not only will be able to clarify important issues for yourself, but you'll be able to share your plan with other people who may offer support, manpower or even financial support.

Until you create a business plan, you have no real identity or direction.

A business plan doesn't need to be a huge, complex document. If you view writing a business plan as a difficult process, you're doing it wrong.

A business plan is simply a guide that shows you

• where you are
• what you want to do
• the outcome you expect

As you build your business plan, these sections will take or more detail and the same information may even be presented in different ways to assist in effective analysis.

Just start with the basics.

Think about that hiker lost in the woods again.

Her plan is not all that different from a basic business plan.

Where is she now?

This may be a best-guess or it might be a highly accurate analysis. If she doesn't have a map and a compass or a working GPS, she might not be able to be accurate, but her guess is still going to be useful.

"I'm off the Appalachian Trail in Virgina, near the West Virginia border."

Where does she want to go?

What would be the point of trying to get unlost if you have no idea of where you want to go? You need to set a goal that is clear enough so you know when you're close and when you've met it.

"I want to get back on the trail and head North into Harper's Ferry."

What is the outcome she desires?

Why do you want to reach your goal? This may seem like an unimportant issue when building a business plan, but it's may actually be the most important. Your "why" is the motivation and the vision which will keep you, and your staff moving forward on those days when it looks like you're not going to make it out of the woods.

"I want to get new supplies, sleep in a hotel tonight and take a shower."

Start with your vision: Some people want to start making charts, or talk about the amazing features of their product or service. These details may come in handy later, but the most important aspect of your business plan is the story behind the business.

Sit down with your word processor or your notepad and write your story.

• Where were you the day you thought of this idea?
• What part of this business is a "part of you"?
• Is there something similar in the market that you're dissatisfied with?
• Is there something similar in the market that inspired you?
• How do you want to do things differently?
• How do you want to do things "the same"?
• What are your values?
• What do you expect the values of the company to be?

In case you're wondering why information like this is important, think again about that hiker.

If a business plan is like a map, then the vision is like the giant lode stone near the North Pole that attracts the needle on your compass.

Who is holding the compass?

You are, along with your employees, teammates, family and anyone else there to support you.

Having a strong vision, is like having a strong magnetic source for your compass. If you're standing behind a wall, looking across a chasm, or if there's a big mountain in your way, the needle still points the way.