Cart
Is Your Business Plan Ready for the World?
After you've spent considerable time and effort working on a business plan, it can be difficult to stay objective about what you've created. Before you take your business plan public, however, it's a good idea to ask some hard questions about your plan that other people — including potential investors — are sure to ask in the future.
Do your short-term business goals make sense?
Every business has a long-term mission — a central idea that defines a company's purpose. But a business must also have realistic short-term goals that help it achieve that mission. Look carefully at your company's goals. Make sure they help you set priorities, assign resources, and accurately reflect your company's mission.
Are you prepared for the worst?
Every entrepreneur plans to succeed, otherwise they wouldn't be in business. But a business plan that assumes everything will go perfectly isn't very realistic.
Instead of ignoring potential threats, address them in your business plan. Outline threats from competitors, market conditions, and other sources, and explain how you intend to deal with them. Preparing for trouble in advance will make it easier to avoid unpleasant surprises down the road.
Who are your customers?
Your business won't succeed if you don't understand the people who will buy your product or service. A good business plan explains exactly who your customers are, why they want your product or service, and how you plan to convince them to patronize your business.
That doesn't mean your customers will all fall into the same neatly defined category. Many businesses appeal to different groups of customers or market segments. If your business is going to reach its full potential, your plan should address each segment, what makes it unique, and how you plan to adjust your business to win different groups of customers.
Do your numbers add up?
It's impossible to know exactly what your company's balance sheet will look like. But part of creating a solid business plan is knowing how to start with some general assumptions and end up with a realistic financial forecast. Even if your forecasts don't always come true, many people will evaluate your plan based on your ability to create an honest, realistic estimate of your company's financial performance.
Can you stay flexible?
Business, like chess, requires you to think several moves ahead in order to succeed. While some industries change more quickly than others, even the most conservative businesses must expect and plan for change.
The best way to do this is not to predict exactly what will change — instead, consider a variety of ways your business might change. Include these in your business plan as scenarios, focusing on how your business will react and adapt to possible changes.
