Starting a business is an exciting and risk-filled endeavor. Perhaps you’re moving from a hobbyist and taking the next step toward achieving your dream of self-sufficiency doing what you love. What many people do not realize is that business planning is part of achieving success. In today’s blog, our team of experts at LongSchaefer will discuss how to prepare and therefore manage success through the art of business planning.
What Kind of Business?
First, determine what kind of business you are planning for, then confirm your purpose and vision. If you perform these two simple steps, you will be able to determine how to structure your business plan.
Start-up business plans should be 10 pages or less initially for investors, so they can grasp the concept of your idea. After the initial review, you should expand on these 10 pages for further clarity.
Clarity and Proof
Banish fuzzy language and the use of automatic template business planning. You MUST back up all assumptions made with experiments. Show the data. Ask managers to perform field tests of your data in the report, so they can see the answers for themselves. The more successful your field tests are, the more likely they are to support your business plan when enacting changes in front of employees. A united front is an effective front.
Rinse and Repeat
Once you start achieving success, it’s important to begin the process of planning again, so you can measure your progress. Regular reviews of your business progress are the only effective way to catch mistakes as you make them instead of in time periods where recovering from them would be difficult. It’s important to remain humble and open with your team, so you can grow effectively.
Ways to do this include:
- Assessing the effectiveness of core activities.
- Assessing overall efficiency.
- Reviewing your budget to determine your financial position.
- Conducting a competitor analysis.
- Conducting a customer and market analysis.
- Using the information you gain to assess your business goals.
By following these steps you’ll be able to increase your productivity and profitability.
LongSchaefer on Smart Business Planning
Our financial experts at LongSchaefer specialize in assisting you with business planning. Our goal is to help you achieve yours. If you feel your business would benefit from an assessment or business planning session, we’d love to hear from you. Contact us today to discuss how we can help and become your trusted business advisor as long-time Cincinnati CPAs.