Business planning 101 – the business plan

Developing a business plan can be a daunting task and hard work.

smiling man in blue shirt

Richard Proffer, business development specialist, Cape Girardeau County Extension SBTDC

Why write a business plan, you may ask? Because it provides entrepreneurs a powerful tool for the foundation and goals of their business. There are many reasons why writing a business plan is essential to any owner. One local business owner in Cape Girardeau said, “All businesses should have a business plan because this allows entrepreneurs to brainstorm ideas they would like to implement and how to accomplish them.”

Think of a business plan as a blueprint for a home. What can help get the house up? What makes a blueprint for a house successful? And what can help it stay steady once up and running?

Also, how can a business increase profit? What can help make a business a successful one?

The answer is preparation and developing a business plan. Business plans are excellent tools for implementing the company’s vision, mission and goals to investors, customers and employees. Also, to give any business any chance of success, writing a business plan will guarantee that business owners pay attention to financial details such as budgeting.

Rieva Lesonksy, author of “A Business Plan Doubles Your Chances for Success,” writes of a new survey, “The study indicated that the type of entrepreneur who completes a business plan is more likely to run a successful business.” Some new business owners can spend two and a half years developing a thorough business plan. Sometimes this helps the person get from concept to design. The business plan will help lay everything out for many business entrepreneurs.

With every company comes a competitor, and establishing a business plan will provide business owners with strategies to differentiate their products. This also allows them to better market their business to customers than the competitor can. Also, business planning is critical because it allows entrepreneurs to test “what-if” situations and create back-up plans just in case the first plan turns out a little differently than expected. The business plan can show you what your business’s strengths and weaknesses are and force you to create a timeline of events. Also, plans can help provide organizational tactics. Business plans will also help entrepreneurs survive over time and have a constructive impact on their business.

For more information:

– By Richard Proffer, business development specialist, Cape Girardeau County Extension SBTDC. The Cape Girardeau County Extension SBTDC  (573-243-3581) and all SBTDCs are always ready to help any future or present entrepreneur plan for their start up or growth of a business idea. The Cape Girardeau center in Jackson serves the I-55 corridor from Ste. Genevieve to Pemiscot counties and includes Bollinger, Madison, Iron, St. Francois and Washington counties.