I am often asked why business owners need a business plan. Why spend time planning rather than “just getting on with the business?” My answer is simple:
“So you know where you’re going and you know how you’re going to get there.”
But I’m also a big one for creating a plan that works for you. The planning process I swear by may not suit your personality type, or your business context. So what are the key elements of a business plan?
1. The business model – how do we actually make money? This is bigger than just ‘selling x-product or y-service’. The business model is how you reach your market, convince them you’re worth talking to, and ultimately why they should buy your wares. This is also bigger than the marketing function of the business, which is where most people put it. This business-model conversation is actually about brand, strategy and operations combined in a synergistic, leveraged flow
2. Realistic action plans: what are we going to do in the immediate future to get closer to our targets?
3. A context-check or what I call ‘life-sandbox’ is extremely important for solo and micro business owners, and is often missed. This life-sandbox is the reality of your life into which your business fits and exists. Most planning processes address the business in isolation to the owners’ lives, so we set lofty goals that are incongruent with our life-reality
4. Finally, a visible, meaningful scoreboard. It would be incredibly boring to watch a game of football if you didn’t know the score, yet business owners do this all the time. Your business plan needs to drive the scoreboard, which in turn drives performance.
In terms of format, I’ve been using different ‘one-page-plan’ formats for years, and am a big advocate for keeping things simple. However, there are times when a more traditional format is valuable. It’s your call – just make sure you have some kind of plan in place.
Need someone to help you with your business plan? Book a BusinessSpark session with us today to clarify your goals and map your path for achievement
Cat
Business CATalyst
sparking your peak business performance
Lee on 29 Jul, 2010 - 4:45 pm:
Thank you Lee, Robin, Suellen & Francie for continuing the discussion.
Reminds me of this: 
Hi Everyone,
Hi Cat
Lee,
I was thinking your differentiation between 'information' and 'inputs' can be likened to a golf swing or a tennis serve ~
Get notified 
A great post & very helpful - thanks so much!
I am in the process of trying to write my first business plan. I have found a template for one which is very l-o-n-g which I am struggling with so your comment regarding a one page business plan caught my attention.
In terms of your one page format, what do you see as the key points to cover on that single page?
Thanks for your comments.
The key points to cover on 1-page are;
Vision & Purpose - put simply, why are you in business? What are you trying to achieve?
Life Sandbox - what are the boundaries that you 'live' in that influence your business decisions?
Market Sandbox - define your target market - who are you 'playing' with?
Mid-term goals - where would you like the business to be in 3-5 years time?
Short-terms goals - 1 year goals that will get you close to the mid-term goals.
Key milestones - how will you know you're making progress?
Key projects or strategies to achieve the short-term goals
Resources - who / what will you need access to?
All this can be captured on one page with an artfully crafted table - landscape. I print my on A3 size paper ... but can be done well on A4 too.
Have fun :-) and good luck with the business plan.
C
Cat,
Thank you so much for your response & ideas. That is incredibly helpful. I've spent the more brainstorming & doing SWOT's and, for the first time, I've actually found it enjoyable.
Thanks again!