Writing a business plan is like running; you always feel better when you’ve finished!

Writing a business plan can be tortuous for entrepreneurs, getting us to sit for hours on end is an activity at the antithesis of our core. Naturally we like to wing-it. For us, we feel that since we are running the ship, and all the plans and know-how’s are in our heads, why must we spend the time to put it down on paper? Yet, developing a business plan is one of the most important exercises a business owner can do; it forces us to think thru the minefields before stepping on a landmine.

Here are some tips, this is not meant to be a step-by-step “how-to”, but it should serve a catalyst to encourage you to take a pen to paper and draft up a plan.

1.     Don’t put it off

Most business owners will only start to draft up a plan only when the bank or investors have asked for one. If you wait until then, chances are you’ve shown the investors that you are not fully prepared to accept their money and that you are not serious about your venture.

2.     The Master Cash Flow

Cash flows are one of the most important components to the plan and they can be the most time consuming. Your Excel skills may be dismal and it may have been eons since you’ve taken an accounting class, but lacking the expertise to develop a cash flow isn’t a reason not to do it, that actually means you need a cash flow even that much more.  

Here’s a tip; place a project on Guru.com; there are plenty of talented freelancers on Guru who can help you develop your cash flow for a few hundred dollars. Years ago I met a phenomenal freelancer on Guru, she has her BA from Harvard and went to business school at Stanford. Over the years she has developed many of cash flows for me and during that time she’s saved me plenty of heartaches.

3.     Growth projections

Your projections have to be conservative in order for you to defend them. As my father would say, “take your projections, cut them in half, and then cut them in half again, then again”. There is much truth in that. The projections must be conservative in order for you to defend them.

4.     Your Team

Chances are your idea and vision will not sell investors. Investors invest in people, not ideas. You and your team will. Who do you have on your team? Think about developing a high caliber Board of Directors who can stand behind your idea, who love start-ups and who can open their network of contacts to you.

5.     It’s not as bad as you think

Really, creating a business plan is not as hard as you think; it doesn’t have to be a doctoral thesis or a novel. Many books have been written to help guide you and software programs will take you step-by-step thru the process (check out Business Plan Pro).

6.     Fluffy vague goals

Leave out hyperbole and hype about being the best. The business plan isn’t meant to be subjective. Keep in mind, the objective of your plan is to point out specific dates, management roles and responsibilities, budgets and milestones.

AFTERTHOUGHT: Creating a business plan is similar to running, I can’t say that I thoroughly enjoy running, although I run or workout almost every day, I do it because I love how it makes me feel when I am finished. I have always felt better after a run, and you will feel better after drafting your business plan.

Good luck