THE SMALL START UP’S SUBSTITUTE FOR A BUSINESS PLAN
Let’s get this clear, everyone needs a business plan. It’s your business compass. Hence, it is disturbing to find that some young entrepreneurs don’t have an existing business plan. As a result, they delay taking conscious actions towards building their start ups.
Your small-scale business may not have a large team and it’s quite possible that you are probably running a remote business, this is pretty understandable for one who is striving to build a small business. However, it isn’t excuse enough. A business plan provides a road map for where you’d like to go with the business. It might not be your current reality but it provides direction.
U.S. Small Business Administration posits that over 50% of small businesses fail in the first five years because of lack of capital and a lack of entrepreneurial experience.
As you proceed on the entrepreneurial journey and expand, you will need a business plan to serve as a direction for your business. Presently, you need to bear in mind that a business plan solely cannot help you get funding or capital or gain experience.
The truth is that you need to settle for being more of a performer. Investors look forward to investing in businesses that are currently running and not business plans.
The thought of having a sacred document called the business plan might throw you into a bout of confusion and sometimes the frustration of not having to meet up with every written item can be disappointing.
So, Instead of looking at it as a document, think of your business plan as a location on your computer where you collect ideas, useful stories, lists and numbers. It’s a place where you keep track of the market, your milestones, goals and projections.
Stick to your target
What’s supposed to happen, when, and who’s responsible?
Figure out your strategy
Highlight your goals, the actions needed to achieve those goals and all of the other critical elements developed during your planning and as you proceed.
Simple spreadsheet projections for sales, costs and expenses.
You can’t just look at your profit and loss statement and get a grip on your cash flow. Month by month, account for what you spend and what you deposit. This will give you a good cash management head start.
Review and evaluate
You need to regularly review your activities to be sure you are meeting up with your projections. Be practical and concise. Set aside time for a plan against actual review once a month to compare what you planned would happen in your business to what really happened.