Creating a Solid Business Plan

Creating a solid business plan is the only thing that will help you protect assets and grow your company. Without a proper plan, businesses fail. Here are a few steps to help you create an effective business plan.

Define What Your Business Does

Before you start working on a business plan, it’s important that you first clearly define the purpose. Having a clear understanding of what your business does will help you forge a path to success. What is the goal? Mission statement? Take the time to sit and truly define your business model.

Create a Strategy

A business strategy is the most important tool when creating a business plan as it’s a clear understanding of how the business will follow its purpose. A strategy isn’t just a plan to help you grow the business, it’s a tangible guide for how things will get accomplished. Furthermore, an effective strategy sets a blueprint to measure progress and helps you to navigate problems as they arise.

Include a Financial Statement

A financial statement is a vital part of any business plan, as it shows you how the company is doing and how much money it’s making. It also lets you know how you’re able to meet your obligations and keep track of where your money is going. Having these records up to date can help you identify areas where you need additional funds, where costs can be cut, and can provide future revenue projections.

Many people make the mistake of trying to handle every aspect of the business independently. Instead, there should be a team of people that can help you in areas that you aren’t strong in. Bring a financial professional in to ensure you’ve created something that works.

Make a Timetable

Having a schedule will help you know exactly how much time you need to allocate for each phase of your business and how much money is required within a specific time period. You should also set small, achievable goals and monitor your progress. Remember, things can always be adjusted, but a timetable should serve as a guide.

Build a Budget

A budget will help you determine how much money you should spend and ensure that you use the funds effectively to grow your business. One of the best ways to start budgeting for a business is by creating an estimate of how much money you will need to spend in the first few months. After that, adjust the budget based on how much progress you’ve made.

Again, using a financial professional such as an advisor is wise. Many businesses fail because the entreprenur attempted to do everything themselves. Be reasonable.

Use the expertise of a network of people from various industries as your business will have unique aspects that you won’t easily grasp. Having multiple professionals on the payroll can help ensure that your business is running smoothly.

Once you’ve created a sound, solid business plan it’s time to start putting it into action.

Originally published on Michael Fortinberry’s website.