The Need for a Business Plan

I have recently had discussions with several small business owners who do not have a business plan, or do not have one that is up to date. The reasons they have provided to me for this state of affairs is that they don't have the time or money to spend on writing a document.

In my mind, it would be like taking a vacation without printing out the maps of where you are going. Sure one can just wander around and have a good time. But wouldn't it be depressing to find out you were 10 miles from the Grand Canyon but did not see it since you did not know you were that close?

Recently, Mousley Consulting has formed a partnership with Gerald S. "Sandy" Graham, a Business and Management Consultant. I asked Sandy if he could supply me with a write-up of why businesses should have a business plan. Here is his write-up.

Why You Need A Business Plan

A Business Plan is the required document that serves as your roadmap to attain success. There are no guarantees in life, and certainly not in entrepreneurship. However, your odds for success are increased appreciably when you have developed a concise business plan that lays out your strategy for achieving optimal growth.

The Small Business Administration [SBA] reports that 50 percent of all small business fail after their first year, 33 percent fail after two years, and nearly 60 percent fail after four years. Reasons for failure cited by the SBA include: over expansion, poor capital structure, over spending, lack of reserve funds or too little Free Cash Flow, failure to adjust to market changes, underestimating competition, poor business execution, poor business location, and an Inadequate business plan.

Fundamentally a business plan:

• Establishes strategic objectives;
  
• Identifies company core competencies with a focus on the one that distinguishes the business enterprise from the competition;
  
• Defines the opportunity; product/service including keys to success and risks;
  
• Provides an analysis of the target market;
  
• Identifies and analyzes competition;
  
• Details a marketing plan and strategy for acquiring customers/clients;
  
• Identifies key management, and what their roles will be; and
  
• Provides important sales projections and financial information.
  

Sequoyah Associates, in conjunction with Mousley Consulting, is dedicated to the owners of small businesses enterprises with a focus on helping them realize and achieve their business goals, aspirations and dreams. If you need a business plan developed, reviewed or revised, we will be happy to see how and where we can be of help. We look forward to hearing from you!

Gerald S. "Sandy" Graham
Managing Partner
SEQUOYAH ASSOCIATES

Author: "See the Green$ - Attaining Your Entrepreneurship Dreams"