1. Create a Vision for Your Business Idea
Once you have come up with the idea for your business it is often
tempting to roll up your sleeves and dive right into the details of
market research and operational logistics. But before you get lost in
the details it is important to have a clear vision of what you want your
business to be and a set of values you want business to adhere to.
This will help you establish your business priorities and therefore
plan more effectively.
2. Know that a Financial Plan is not the same as a Business Plan
You cannot create a solid plan without a financial plan and forecast.
But your financial plan should ultimately reflect all of the elements
in your plan. If you have not completed your market research on your
industry, customers and competitors before you create your financial
plan, your numbers are not likely to reflect reality.
3. Don’t Forget Your Customers
Many entrepreneurs come up with a brilliant idea, thinking they know
exactly what their client want but never actually ask their client if
that’s true. Take time to understand your customers and build your
business plan on what they need and how you will service that need.
4. Pay Attention to your Competition
Don’t assume that you will be the only business around offering your
service. Research your market and find similar companies. Study these
companies and learn about what works for their business and what
doesn’t. Then make your business better.
5. Don’t Avoid Risk
Creating a business plan isn't about avoiding risk; it's about
understanding and managing risk. Your business plan should anticipate
possible challenges and address your strategies for meeting these
challenges. Remember there is a difference between calculated risk and
recklessness. Your plan should help you make that distinction.
6. Get a Third Party Review
It’s difficult to detach yourself and review your plan neutrally, so
ask a htird party to review your plan. They will be able to objectively
highlight any areas you might need to improve or any areas you may have
missed.
7. Expect the Unexpected
It is important to leave some room in your plan for any unexpected
changes. Whether this is in your budgets or in your marketing and
operational plan: build in some flexibility to your overall plan.
8. Don’t Skip the Plan!
The worse mistake of all, of course, is not creating a business plan in
the first place. Writing a business plan is hard work and there is no
guarantee it will make your business succeed. But it is still the best
way to turn your idea into reality.
