A Case for Business Planning

by Patrick VanTyle, Founder of VanTyle Business Solutions.

A very wise business advisor once told me, “Patrick, all business is big business!”  His point was to remind me regardless of the amount of total sales a company has the basic business principles still apply. Working from this point of view it should come as no surprise the ultimate value planning has in business today.

Unfortunately, not everyone agrees planning is important. Many companies start on a dream and very little planning. In most cases in a very short time, the complications from the lack of direction begin to take a toll on the owner along with the owner’s family. Working harder and longer hours is the typical reaction. Ultimately, the frustrations grow to the point of exasperation and eventually they close the doors. I often ask myself if these stressed out owners are functioning in the role as owner/manager or are they just working at a job they hate?

Owning your own business is one the greatest and most rewarding activities anyone can embark on. Imagine having fun every single day, every week, and really enjoy it all year long! The frustration too many owners face is not because they do not know their business or are not the best at what they do. In fact, being great at what they do is often the reason they started a business in the first place.

In today’s competitive environment owners, need every advantage they can get. Creating a business plan for their business is one of the most effective ways to achieve this advantage. A business plan has enormous benefits. A plan: creates a road map for your company, is a key element in obtaining financing, identifies business killing issues, helps to create goals or benchmarks, is a modeling tool for your operation, provides a vehicle for tracking progress, and is a reality check for your idea or business. The list is endless.

Often, business owners ask me about the best format to write a Business Plan. Experts disagree and argue there is no right way to write a plan. However, they all agree there are core elements needed and a few rules you should follow. You must write your plan for the audience that will ultimately read it. Save the bulk of your technical information for your operations manual. Additionally, be sure your financial projections are complete and accurate. All plans have an Executive Summary, be sure to write it last.

A Business Plan is one of the most useful tools all companies need to use regardless of size. There is a tremendous amount of information available if you want to learn how to write one for your business. In fact, there are experts who specialize in writing or will help you write your plan. Now is a perfect time to begin the process. With the New Year fast approaching, you owe it to yourself to look close and evaluate your business needs. If you start now you can implement your plan for the New Year and reap the rewards in having a defined business focus. Having a more structured and efficiently running business will increase your profits and reduce your stress in both your business and personal life. Those reasons alone should be enough motivation to get started in writing your Business Plan.