When you start a business, it's an exciting time.
You are passionate about your big idea.
You can see it clearly in your head.
You know what you want to do.
You just need to get on with it.
Sound familiar? Yet one of the main reasons so many new businesses fail isn't necessarily because the idea was flawed.
One of the biggest reasons they fail is actually because they didn't have a clear plan.
The plan is what moves you from ideas to action.
Those that have a plan have had the discipline and foresight to really think through their ideas and how they are going to work.
So 5 important questions to ask yourself as you write your plan? 1.
For what purpose are you writing your plan? Sounds obvious but is it? The way you write your plan will vary depending on whether the aim is to attract outside funding, to provide a focus & direction for growth or simply to get you started.
It's amazing that many business owners simply don't have a plan, or if they do, they did it once and then filed it away.
Yet if you make your plan the record of WHY you are in business, the goals you have and HOW you are going to achieve them, it becomes so much more meaningful.
Make your plan a living document so it that becomes an invaluable tool.
A tool that you evolve and adapt as your business grows and as conditions around you change.
It is your roadmap that sets out the direction you are going and how you are going to get there.
And keep it short, who needs some consultant type lengthy tome that sits on a bookshelf to gather dust.
Stick to the main points and make it relevant to how you will be running your business.
2.
What are your goals? Set yourself and your business clear goals.
The acronym SMART is a useful tool to get things going

• Specific: The more specific the goal the better.
  How much money do you want to make each week/month? What level of sales do you need to generate that sort of income? How big does this business need to be to afford you the lifestyle you want to achieve?
• Measurable: If it can't be measured, it can't be managed.
  In context of the business plan, it could be to establish a business with revenue of $ 1m within 3 years.
  You can then break that down to shorter term goals and construct a marketing & sales plan to get you there
• Attainable: The goals you set need to reflect the capabilities and competencies that you have in your business.
  There's no point in setting goals that are not attainable You want them to be a challenge, as it encourages us out of our comfort zones, but not impossible
• Relevant: How does it fit with your vision for your life and business? You want goals that are relevant to the life you want to lead and the values/belief systems that govern how you behave.
  
• Timely: All goals need to have timelines attached to them as otherwise they don't happen.
  It creates a focus and sense of urgency.
  

3.
Which market will you focus on and which niche to dominate? The most fundamental question is WHO are you marketing to, and WHAT is their number one problem or frustration.
You don't want to just see who turns up.
That's like trying to practice archery with a blindfold on.
Better to have researched the market, so you are clear on whom you want to focus your efforts on.
So often by narrowing your scope you expand your appeal.
Most companies have limitations in their resources and for small businesses this can be a real challenge when competing in large markets.
For a small business you don't often have the budgets to compete on the same level with the big boys and so need to be realistic about where to compete.
The importance of targeting to your success cannot be overstated enough.
The most successful clients of ours are those who have found a highly specialised niche in their broad 'market' and have then adapted & developed their product/service to specifically meet the needs of that market.
4.
On what basis are you going to compete? You start with WHO you focus on, WHAT you provide or HOW you provide it.
HOW are you going to solve their problem in a way that is better or different from everyone else? The choices you make in response to your own unique situation and the market environment you will be operating in.
The question is how best will you build and sustain a competitive advantage.
Being all things to all people is not a recipe for success so how do you avoid getting stuck in the middle and carving out a compelling position.
You could choose to be different and uncover a missed opportunity or simply to be better on a dimension hugely valued by your market.
You could choose to do either but for a particularly well defined niche.
Or maybe there are options to lead on cost.
Each has very different implications for your business and it is these that need to be worked out at an early stage to decide which will work best for you.
5.
How are you going to make money? Way too many business owners do not actually clarify how the business /revenue model is going to work and indeed whether it is able to generate the level of return they need to fulfill their life goals.
You have all these great ideas but have you ever asked whether people want to pay for it? Are you clear as to what capital you will need to keep you going at the start? Have you got enough funding to cover the business until the cash starts to flow in? The business model you outline in your plan is the core to whether the business is going to be viable or not.
It's not just about the products or services that you are going to sell.
It is about the configuration of value.
It's about your cost structure, revenue streams, channels, operations and resources.
The business model needs to identify how value will be created and gives it a structure as to how that will be converted to revenue.